Very good explanation PS, you nailed it in the head. Lets say your price range is $500k and the house that fetched $500k last year is now $400k, would you buy that $400k house or would you buy a larger and better house for $500k that was $600k or $700k? That is why median price will always show very small decline in comparison to the actual decline. If you still don’t believe it, do your own research. I know someone who bought a 1480sq-ft house in March 05 for $565k, the owner before him bought it for around $580k, and now, a 1700+sq-ft house a couple of houses away is listing for around $550k and a 1480sq-ft house down the street is listing for around $500k. This is around Compass Point Dr. In 92126. Those are SFR just for your info. I can pull up multiple examples in just this tiny area with the same result. So please tell me again, who’s confused?
