North Scottsdale Real Estate Market Report November 2012
Hey, you know what we’d like to say to everyone out there, Happy Thanksgiving! I can’t believe the time has already come isn’t it crazy?
Absolutely crazy!
It is!
And the market’s also a little different this time of year, why don’t you tell us what’s happening?
(Jeff) Well, for October 2012’s market report we have active homes 17,700…
Pause the robots! Does anybody care about all that? Let’s just break it down in simple terms ok? We have about 2 ½ months of inventory still. That’s extremely low. What’s normal inventory in a normal market?
Oh, about 3-5 months inventory so we’re riding low. And because of that we’ve seen prices rise over the past year 34%!
That’s correct, the average median list price is up 34% from this time last year. I’d say that’s a significant difference.
Yea, that’s a significant difference, but of course “Zillow” puts out their new “Zestimate” today talking about how the market is still indecisive of which way it’s going to go because there’s 54% according to their “Zestimates.”
Yea, they like to make it sound real scary. Well their number is 45.5% of people are still underwater in today’s market, using their “Zestimates,” that’s the key.
Let me show you what a “Zestimate” is…
This should be interesting…
Sometimes Zillow looks at your house and they go… (puts vase on table) “That’s your Zestimate.”
Sometimes they look at your house and they go… (puts different vase on table) “That’s your Zestimate!”
Mind you, you have the same house, and sometimes they go…(new vase on table) “This is your Zestimate.”
So then, the question becomes, which Zestimate is correct?
How do you know, Ashley, if you look at it your number is close or not?
Well, if you’ve been listening to us talk about Zillow, you’d know NONE of those answers are correct answers. When in effect your true value is more like this…(puts new container on table).
So, that’s how we’d like to think of Zestimates. Push those aside, because really, those numbers are just so inaccurate. It’s not a good source to use.
Well said Ash.
So you know what I have to say to Zillow?
Chew on them Twizzlers!
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