“The reason that both the average and median prices have increased during the past year is that the sales distribution has shifted dramatically. The low end of the market has been crushed by the loss of buyers due to the increasing interest rates, especially the ARMs. The net effect is that the mix of homes sold has proportionally more expensive homes than previously. So comparing the average/median price now to the average/median price a year ago is like comparing an apple to an orange. Price reductions are real and ongoing and increasing.”
La_renter. Can you explain this a little more for a newb? Thanks. I want to be able to use this as a rebuttle when everyone denies that homes are dropping because the “median” prices haven’t dropped.
