The MEDIAN price is not an accurate indication of anything, in an up market or down market, nor when the current median is compared to a previous median.
IN FACT, it is probably the worst indicator that could be used, but the media uses it. Virtually ever spokespiece of the media is handed a script to say or write. They don’t question it or understand it. It’s how misinformation gets around, myths that get reported as facts.
In the last few months, (the most recent fuel for the median price) since subprime meltdown started, many people could no longer qualify for purchase loans. These are MOSTLY entry level buyers at the lower end of pricing.
Because they couldn’t get loans, they didn’t buy. Fewer lower priced homes sold. VOILA, the median went up.
It’s NOT an indication of strength in the market in any way shape or form, sorry.
Here’s an example:
1,2,3,4,5,6,7, The median is 4
3,4,5,6,7 The median is 5 WOW 25% higher !!
You can skew stats to your favor when necessary, but MEDIAN house prices means nada, even when compared to previous medians.
