Tucson Average Sale Price – Why you have to Drill down
May 9, 2009
Post Tags: Comparative-Market-Analysis , location location location , median sale price
A Closer Look at April Average and Median Sale Price
A closer look at types of homes
The overall average sale price was reported for April was $193,351.
From the chart you can see when we break this down by type we get a better picture of what the true average sale price is based on what type of home you are looking to either buy or sell. This is one of the reasons looking at Average or even Median Sale price for the entire Tucson area isn’t a good way to make any kind of buying or selling decision.
The old Location, Location, Location hasn’t changed even today in the land of recession and social media some things don’t change; this is one of them.
The only way to know the value of a specific property (either buying or selling) is a comparative market analysis. And someone, who knows how to do one. We see COMPs all the time that are not true COMPs. Which is why we always do our own.
Single family residences at the top of the spectrum $204,352
Manufacture Homes (mobile) at the bottom $59,243.
There is a bit of difference between these two.
Drilling Down by Type
Drilling down by type of home and property makes a big difference in the average. But there is more to simply drilling down by type. Drilling down even further we have to take into account Age of home, Land, sold with the home and Area (location). A mobile home on a quarter acre is different from a mobile home on 25 acres. But the sale price doesn’t take any of this into account when being reported.
The same is true for Median Sale Price
The same is true when we look at the Median sale price. Reported overall median sale price was $164,000. The median for a mobile home is very close to the average. The median for SFR is much lower, by almost 35,00o.
This tells us the mobile home sales are stable and going for about the same amount.
For SFR more homes are selling for less. We all know there are a lot of short sales and foreclosures in these numbers. Those sales going for smaller amounts bring the overall median sale price down.
We still wish the reporting would reflect this the way it does now for type of property. Comparing Resale homes with Foreclosures and short sales (as we have said before) is like pricing used cars along with flood cars to say what the value of all cars should be.
