What exactly does median home values mean?
It is the price point at which half the homes sell below and half sell above the given price vs average price is just that, the sales price of all homes added together than divided by the total sold.The problem with the median values at this time is a greater volume of distress sales are selling far below the median value pulling it down even further. Unfortunately, these sales do create a problem for non distress sellers as a buyer will, and should, only pay a certain amount over the prevailing sales in a given area. As I told many buyers back in 2006 when they were purchasing at all time highs, some day when you go to sell your home do you want to be the competitor to a higher percentage of your neighbors whom purchased their homes at half the price you paid? This is why it is very important home values do not get too far ahead in value. It needs to be slow and meandering so the majority of homes in a given area turnover at a reasonable increase. From my experience any more than 6%+- per year is too high. When it is below 4% it is not good either as there is no incentive for a buyer.
So whether you are buying or selling, it is very important to obtain the services of a local real estate appraiser. They can analyze all the data in your neighborhood or area to make an informed decision on property values.
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