If you don’t think I’m correct, let me know why you think so. You are an intelligent person, so I will at least read what you say and give it thoughtful consideration. But don’t say that the median prices as reported are lagging by one to two years, because that is incorrect.
Median resale prices as reported in the newspaper every month are lagging, but only by 2-3 months. The UT reports the figure for the previous month’s closed sales. It’s now the middle of December, so these sales are from closings in November. Let’s say the average close date is November 15. But the sale that closed Nov. 15 probably went into escrow about 45 days ago on average, say on Oct. 1. So the median price that is reported this week, on average, went into escrow on October 1, which is 2.5 months ago. That is the only lag in the statistic. The UT compares the November figure to last month, and to last November.
sdrealtor – For the umpteenth time, you have revealed your lack of class, and your general lack of real estate knowledge. You think there is a $13,000 difference between a typical home of 2025 s.f. and a home of 1981 s.f.? (First of all, 2025 minus 1981 is 44, not 43, but I’ll let that slide. Also, the current median resale price of $540,000 divided by 2025 s.f. is $267 per s.f., not $300 per s.f. as you claim. I’ll even let that slide.) But Momma must have scooped you an extra helping of DUMB last night at the supper table.
Consider a typical median priced home of $540,000, with a typical size of +/- 2000 s.f., in a typical San Diego neighborhood, let’s say in Clairemont, or San Carlos, or Mira Mesa. Let’s say you are trying to evaluate what this house is worth, compared to a nearly identical house across the street that is 44 s.f. smaller or larger. Are you going to conclude that the house across the street is worth $11,748 more or less? (44 s.f. x $267) If you are, you are even more ignorant than I thought. Remember, the figure of $267 per s.f. includes the lot value, Einstein, which might be $250,000 to $350,000. The lot value is the same for an identical lot – it makes no difference if the house is 1700 s.f. or 2500 s.f. A knowledgable realtor, appraiser, or lay person is going to know that the only difference between these two homes is 44 s.f. times the depreciated current value of the living area size, probably in the range of $50 to $70 per s.f. of living area, depending on whether this is a newer or older home. So the difference in value between these two homes is going to be around $2500, not $13,000.
And sdrealtor, I would think that even you would have realized that the average or median size of resale homes in San Diego County goes up a little bit every year, for three main reasons:
1.) Thousands of homeowners add onto their homes every year, and none are made smaller.
2.) Every year, hundreds and hundreds of smaller houses are torn down to make way for very large houses.
3.) New homes built in San Diego County are larger than 2000 s.f. on average, and although new homes are not counted in the resale home prices, every year thousands of newer homes are added to the list of resale homes as they resell for their first time. Some of these homes were built in 1985, some in 1995, and some in 2005, but on average, they are larger than 2000 s.f.
So the average size of a resale house goes up slightly every year. If you don’t believe me, check with the Assessor’s office, or even with the real estate agent in the adjacent cubicle.
