December 10, 2007

Lies,Damned Lies, and then there are Statistics... The article titled "California's October home sales slide 40%" reported by Inman News today evokes thoughts of Mark Twain's famous saying there are "Lies, damned lies, and statistics". Though the number of homes which sold is easily tracked, calculating the true median home price is a little more elusive. The size of homes which sell in a particular period can greatly influence this statistic. The median price has been used quite often as a benchmark for home values since all things being equal, roughly the same size homes sell each month. However, current lending conditions affecting first-time home buyers have skewed these numbers and in fact a disproportionate number of larger homes are selling; and since larger homes sell for more, this has created the appearance of an increase in the median sale price in certain areas. For example, one of the cities sited in the article as one of the 10 cities and communities with the greatest median-home-price increases in October 2007 compared to October 2006 was Redwood City at 20.6 percent. But if one examines just the single family homes which sold in those two periods, it reveals that in October 2006 the median home price was $810,000 and a year later $1,100,500-a whopping $290,000 more! Pretty exciting news for sellers until you look further at the data and realize that the median size home sold in these two periods also grew; from 1330 sq. ft. to 1760 sq. ft. Calculating the price per square foot which homes...
Alternative Real Estate Models Drew & Christine Morgan, Drew and Christine Morgan 650.508.1441 "Helping People Make Good Decisions"sm November's Market Reports-Our custom graphs Find Your Perfect Home Search for an Open House Get E-mail Home Alerts What's Your Home Worth? Moving Soon? How's Belmont's Weather? Want to Compare Schools? Belmont's Blog Real Estate Blog About Us Our Rebates Our Fees Buyers: Buying a home should be fun and exciting yet the uncertainty of the process and the magnitude of the investment can be daunting. That's where we help. Few if any agents are as diligent in helping you understand the entire home buying process. Finding a home you like is the easy part--getting the home you want can be a challenge. From getting a loan, to negotiations, inspections and escrow follow-through our detailed team will assist you in understanding and even enjoying the entire process. Sellers: Our reputation speaks for itself. In 16 years as a partnership we've sold nearly every home we've listed for sale.* In today's market it's all about getting your house seen in both traditional print advertising and on the Internet with virtual and video home tours. Our "Excite" marketing plan creates a lasting first impression with high impact roll out of your home's advertising. We've successfully negotiated hundreds of contracts We're never in a hurry unless you are We explain the entire buying process and guide you through every aspect of your transaction We tell you if we don't like a home and if we'd buy it ourselves--we...

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