Zillow Reports Tucson Real Estate Down 7.6% for the Past Year
March 1st, 2008 Categories: Real Estate News, Tucson Housing Statistics, Tucson Real Estate
Popular home value and home search web site, Zillow, reported a 7.6% drop in Tucson Real Estate values over the last year. Every system has flaws, deriving statistical data is difficult because certain items have to be held constant or assumed in order to come to some type of concrete figure.
I am an Economist and Realtor in Tucson Arizona… I wont bother you too much with the math, but I feel it is important to point out a few things about estimates of value derived by Zillow.
From what I can understand, their system pulls a combination of MLS data, and tax record data depending on the location and the cooperation they receive from professionals in that location.
Not all sales reported to Zillow are market sales. When a system pulls tax records it can show sales between family members, a company selling to another company owned by the same person, and various types of distressed sales. This information can paint a picture that is not as accurate as the analysis a local agent or appraiser can compile using market data to derive value.
Zip code data. I will be the first to tell you that zip code data is useful. I use it for my Tucson Real Estate Market Statistics Zip Code Reports. Unfortunately, zip code information does not display subtle differences in an area. Zip code data is a good source for general data, but after that, it is important to drill down deeper in order to have the clearest picture possible. The reason… zip code will not show a difference between a home near a land fill and a home near a great park in the same zip code. If you were buying you would see a huge difference.
All in all, Zillow is a good tool for general information. So is my web site, but these tools are only good for the preliminary research of buying or selling a home. Eventually it will be wise to consult a professional in order to make the most informed decision possible. This is not an online auction purchase, it is the biggest investment of your life.
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