jg’s chart is an excellent example of the variability of monthly zip code specific median price.
Monthly data is very noisy because the sales from one month are from a sample of homes that are different from the sample from subsequent months.
You must separate the signal form the noise.
I have plotted a blow-up of recent La Jolla Price history below. There is a lot of fluctuation from month to month.
The general trend is that the median price is about what is was at the end of 2004. But drawing general conclusions about the La Jolla sub-market based on a single monthly number is misleading.
The La Jolla data showed a 20% increase from July -Sept 2006. How many here think that accurately represents the La Jolla Market ?
According to the monthly data the La Jolla median is UP over 9% from the end of last year. Making a conclusion that the general price trend in LJ is currently up would be dangerous. I recommend that you look at the big picture.
[img_assist|nid=3537|title=La Jolla Median Price SFR|desc=|link=node|align=left|width=466|height=349]
