The sun came out and I lost control ……….
We had a nice family holiday at the end of August, a week away and a time to refresh. Sorry for the delay in this next post.
Although it isn’t a timely point I want to make.
Using numbers to understand what’s going on is always difficult in a small market. Clearly, if the numbers are small … the conclusions can be misleading. This is especially true in a slow market.
A Slow ~ Small Market
Here’s where it’s easy to fall into the trap of using “real” numbers to arrive at misleading conclusions.
The article says
“yet the per-housing unit sale price rose to about $254,000 from about $239,000 last year. “
While this is an absolutely mathematically accurate statement .. it creates the impression that sale prices and property values can be equated relative to each other as averages … But in reality, they aren’t related.
Especially in a slow market … when the number of sales is off … even 1 or 2 property sales (either really highly priced or really low priced) can skew the results when calculating “average”. And this year we are seeing higher priced homes sell ~ where even 5 years ago a big sale was $ 325,000.00 we are often seeing homes sell for over $ 600,000.00 today. Just a couple of those and the average goes up.
So in the larger / more general conversation stay away from averages .. and When considering your property, it’s best to have an independent opinion based on current market trends that consider specific comparables.
Cheers ……….. Dave
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