Ask the Real Estate Expert – Ron Lagemaat, BSc. REALTOR®
The Statistics Can Save You $$
Many people would like to start building equity through a home purchase, but are held back by concerns about timing and cost. Media reports of housing prices can be confusing or even misleading, using statistical terms that most don’t understand and very often aren’t reflective of the local market. Understanding current market trends truly can save you thousands.
A median is that price at which half the homes sold for more while half sold for less. The median price doesn’t give any indication of the spread of these prices. Many properties are sold for much lower or higher than the median price.
An average price is the total dollar volume of homes sold for a particular period, divided by the number of units sold. Average prices are typically reported for the sales activity in a given area for a given month, quarter or year, and provide a snapshot of past activity. An understanding of the housing in a particular community is needed to put average prices into perspective. Trends and preferences are not reflected in the average.
A better measurement technique will be the housing price index (HPI), which tracks the price of a typical, or benchmark property. Locally, these MLS® stats will begin being reported in 2018.
I will be compiling local sales stats for 2015 and presenting my analysis in next month’s issue of Ask the Experts®.
Save yourself potential losses by choosing a REALTOR® with experience in the community in which you’re interested in buying, who will provide knowledgeable market analyses, show you what is available within your budget, and be able to negotiate effectively on your behalf to obtain the right property for the right price.
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