Market Conditions in 85253>Question Details

Margaritavil…, Home Seller in 85253

Why does Zillow show prices plummeting in PV over the past month??

Asked by Margaritaville, 85253 Mon May 25, 2009

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Luxury Home Shopper’s answer
My husband (a financial executive with analyst background) and I are shopping for houses. My husband ran some VERY detailed comp analyses on homes in PV (separating out land, etc - our realtor was very impressed with his modeling). His comps came in fairly close to what Zillow was saying. Some of their facts are off on some of the listings, but their numbers were at least a decent guide.
Good luck:-)
3 votes Thank Flag Link Mon Dec 28, 2009
Because the supply of homes is high and demand low. In fact, expect prices to continue to decline over the next 2 quarters at least. There are over 500 homes for sale and less then 20 sold each of the previous months. Take a look at the link below for a more detail report of the Paradise Valley real estate market.
3 votes Thank Flag Link Mon May 25, 2009
because Zillow is wrong about 70% of the time.

Buyer's Agent Realtor
1 vote Thank Flag Link Tue May 26, 2009
I know that Zillow does not have a great reputation with Real Estate agents for a number of reasons. It is my opinion that Zillow does track pricing trends fairly well though.

Pricing for the luxury home market is very volatile in this Phoenix/Paradise Valley/Scottsdale market. There are not enough buyers for all of the properties listed. When a seller decides that they are "very motivated" then they drop the price until a buyer is interested. Being that there are many bank owned properties and short sales, this means that prices drop to the lowest price available usually. That is a slippery slope.

During any given month, the properties sold can show a misleading trend-line. All it takes is a few very low priced homes in a slow month to skew the average price downward. If there are no very high priced home sales that month, then we could expect the drop to be exaggerated. (this also works in the opposite direction)

That said, the values in PV and everywhere have been affected dramatically during this market downturn. The best way to really know what prices are doing is to have an agent perform a very detailed analysis of homes like yours. If you have your home listed, this should be something your agent could provide. If your home is not listed, I would be happy to help.

Jim Kuttner
RE/MAX Professionals
Web Reference:
0 votes Thank Flag Link Thu Mar 17, 2011
It has been no secret in 2010 that Paradise Valley is going to be hit hard. Loan rates are re-setting and it remains difficult to get a luxury home loan, even with higher interest rates. If you are a buyer...this is your time!

Kathy DeAngelis
Realty Executives
0 votes Thank Flag Link Mon May 3, 2010
Zillow is one of the least accurate home evaluators out there. I have had numerous clients come to me with the approximate value of their homes they calculated off of zillow, and the price has been off by tens of thousands of dollars and even hundreds of thousands. There are a few other sites i would suggest using before zillow and the truly best option is to contact a Realtor, and have them run a full comp analysis on your property. Most agents will do this for free for you.

Other Sites:

If there is anything i can do to help in the future let me know.

Chad Tornabeni
Capital Realty.
0 votes Thank Flag Link Thu Jan 21, 2010
Zillow is no entirely accurate. If you have any doubt, we can always run a CMA on your home to verify the opinion of value.

Daniel Reynolds, Designated Broker/Realtor®
Broker Executives, Inc
Broker Executives, Inc
0 votes Thank Flag Link Mon Dec 14, 2009
Zillow offers generic values that don't make adustments. Either way, sales prices may be dropping. When trying to value a property, NEVER trust an automated valuation. Only get a CMA from an agent or an appraisal that use a true value method
0 votes Thank Flag Link Tue Sep 15, 2009
Zillow gives value on paper and does not consider location, features, interior features, builder, material, views, s/f, etc. But Paradise Valley has seen significant drop in prices. Homes listed 8-12 month are reverting back to the banks and being sold for 1-1.5 million below the listed prices 8 months ago. Sellers need to really look at the market and speak to a truthful agent not one that will tell them what they want to hear to get the listing.

View my site and I have listed all current sold and pending home in Paradise Valley.
0 votes Thank Flag Link Mon Sep 14, 2009
Unfortunately, Zillow doesn't allow for actually seeing INSIDE the home! It's like trying to evaluate a home from across the street without seeing the granite countertops or the wood floors. Although, it's a very rough estimation of the area, it doesn't allow for upgrades or adjustments that should be made to a comparable.

Although values in Paradise Valley have declined it's probably not as much as Zillow indicates. I would suggest getting a independent appraisal, or an accurate assessment of value from an agent who really know this area.
0 votes Thank Flag Link Sun Jun 21, 2009

Although prices have dropped significantly through out the valley, they should not be dropping that quickly. Also Zillow is not all that accurate! However with out seeing the specific homes they are referring to I am not sure.

If you would like an accurate analysis please contact me and I can provide one!

Lucinda Tkach
0 votes Thank Flag Link Tue May 26, 2009
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