An excerpt from the sddt.com:
“However, when the median is substantially different than the average, then there’s something wrong in the market,” he said. “Because, in a strong market the median and average should be very close. Here we’re showing a differential of over $100,000.”
Data from the S&P/Case-Shiller Home Price Indices released on May 31, which more closely measures changes in home values, showed that San Diego homes in March had depreciated 0.8 percent on a monthly basis, and 4 percent on an annual basis.
“We’re basically doing better than the other 18” cities measured by the Case-Shiller Indices, he said.
Through the first five months of the year, total home sales in the county have declined 7 percent to 12,476. Over the same period, total foreclosures in the county have declined by 11 percent, to 5,416.
Since foreclosed homes represent such a large percentage of the current for-sale inventory, Nevin said it’s noteworthy that sales activity has held up to a more pronounced decrease in foreclosure activity.
“It’s showing that when you factor in the major decline in distressed sales, that is basically showing that the market is really strengthening, if they can do almost the same volume with fewer distressed sales,” he said. “That’s an indication that there’s life out there.
Alan said that in a ‘strong’ market, the median and average sales prices should be very close.
For the 470 NSDCC detached sales between April 1st and May 31st:
Median SP: $854,000
Average SP: $1,086,723
For the 385 NSDCC detached sales between April 1st and May 31st under $1,500,000:
Median SP: $771,419
Average SP: $808,964
When you take out the 85 homes that sold over $1,500,000 (in two months, a strong signal in itself!), the median and average are pretty close. It’s been a strong market around here lately – will it hold up?