Here are the 90-day moving averages of the median list and sold prices for detached homes in SD:
The 90-day median list-price-per-sf on this graph has blown through the roof – why?
It is purely from sellers’ greed, or is the data skewed?
The 90-day moving average of list prices could be influenced by a surge of higher-priced homes coming to market, or a combination of more homes listing at higher prices. The local MLS doesn’t allow median prices to be computed on samples of more than 500 listings, so let’s just check the last three months’ in NSDCC.
Here are the number of homes listed each month in NSDCC, and their median cost-per-sf:
The rapid increase in the median list prices was caused primarily by a surge of more-expensive homes coming to market (a 35% month-over-month increase of $800,000+ listings in NSDCC), which would cause the median to rise quickly. But how many people will look at the graph above and think sellers have gone crazy – I know I did!