Featured Only one live/work loft is left at the 4th Avenue Lofts | Enjoy this clean and contemporary North Natomas condo at the Westlake Villas | Smart buy: an affordable classic and great starter or investment in Oak Park
Search Sacramento homes | UPDATED! [under $50,000] [under $100,000] [$100,000s] [$200,000s] [$300,000s] [$400,000s] [over $500,000] | Sacramento condos | Sacramento multi-family (2-4 units) | Sacramento apartment buildings (5+ units) | Sacramento JUST LISTED homes & condos | Sacramento homes built since 2005 | Sacramento vacant lots & land | Sacramento commercial properties | Sacramento foreclosure listings | About Sacramento foreclosures and REOs
Explore Anatolia | Antelope | Arden | Auburn | Cameron Park | Carmichael | Citrus Heights | Curtis Park | Davis | Del Paso Heights | Downtown Sacramento | East Sacramento | El Dorado Hills | Elk Grove | Fair Oaks | Galt | Gold River | Granite Bay | Greenhaven | Laguna | Land Park | Lincoln | Meadowview | Midtown Sacramento | Natomas Park | North Highlands | North Natomas | North Sacramento | Oak Park | Old Sac | Orangevale | Rancho Cordova | Regency Park | Rio Linda | River Park | Rocklin | Rosemont | Roseville | Sacramento | South Land Park | South Natomas | Southport | South Sacramento | Tahoe Park | The Pocket | UCD Med Center & Elmhurst | West Sacramento | Woodlake
FAQs: What is Median Sales Price?
Sunday, November 2, 2008
Q: What is "median sales price"? Why did the median price spike in Sierra Oaks in the middle of 2006?
Asked by Kelsey, a home buyer in the Arden area
A: Your question strikes at the heart of so many people's questions about home values, Kelsey.
The median resale price (sometimes called "median price" or "median home price") refers to the price at which half of all homes (in a given area for a certain time period) sold for more and half sold for less. If the sampling of sales isn't large enough—say for instance it's for a small geographic area or short time period—then that number can be skewed by a couple properties and may vary dramatically from period to period.
In May of 2006, Sierra Oaks (95864) had an unusually high number of homes selling for over $1 Million. While million-dollar homes aren't unusual in the area, there were four homes that sold in that price range in one month compared to the 1-3 that sold other months.
If you look at a larger area or longer period, you'll get a truer picture of things--but median resale price is an imperfect number and is a "snapshot" of what types of homes are selling at any given time, not necessarily of actual home values. This is why Sacramento's median resale price has dropped dramatically in the last several months as real estate investors and first-time homebuyers have flooded the market but the number of move-up buyers has been low (note: foreclosures and short sales don't fuel the move-up market because banks don't buy a property after selling and short-sellers are typically exiting the ownership market).
Labels: Anatolia, Antelope, Arden, Auburn, Carmichael, Central, Citrus Heights, Curtis Park, Davis, Del Paso Heights, Downtown, East Sac, El Dorado Hills, Elk Grove, Elmhurst, Fair Oaks, FAQs, Galt, Gold River, Granite Bay, Greenhaven, Laguna, Land Park, Lincoln, Lodi, Meadowview, Midtown, Modesto, Natomas Park, North Highlands, North Natomas, North Sac, Oak Park, Old Sac, Orangevale, Pocket, Rancho Cordova, Regency Park, Rio Linda, River Park, Rocklin, Rosemont, Roseville, Sacramento, South Land Park, South Natomas, South Sac, Southport, Stockton, Tahoe Park, UCD Med Center, West Sac, Woodlake, Woodland
Tag this post: del.icio.us | Digg it | reddit | Yahoo MyWeb | Google | StumbleUpon | Add to Technorati Faves
posted by Rob McQuade @ 9:50 AM,
