Swearingen report for April
Lee Swearingen, a Victoria real estate broker, compiles detailed listings about the local real estate market each month.
The market continues to be influenced by low inventories. We feel this is the primary cause of a slight drop in activity the first four months of this year. Median and average prices, even though fluctuating monthly, continues to remain historically high.
It is probably a good idea to discuss the median and average price as market indicators. These widely used numbers are a reflection of market activity, not value as it pertains to a particular property. One cannot assume that if the median price is up/down ten percent the value of my home corresponds.
Median price, the most closely watched, is a point where half the number of sales are below and half are above. Median price is definitely an indicator of the economy and job growth but inventory can also affect the numbers. If, for instance, the inventory of acceptable properties in the lower end of the market is low, the median price will rise.
Average (mean) price likewise can be influenced by a few sales. Average is determined by adding the prices of all sales and dividing by the number of sales. In a small market like Victoria, a few high end sales can influence the number up or a number of low end sales can bring it down.
Please keep in mind a number of factors go into determining the value of a home. Median and average price of the market are just a part of that determination.
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