Bubble bloggers argue that median price statistics understate price drops, due to fewer lower-priced properties selling. Now this graph from San Diego real estate agent Bob Casagrand (via OC Renter) vividly illustrates that for San Diego. (Click for larger original.)
He notes, "Also, take note of the dramatic reduction in sales at the low end of the sizes." I added the red lines, showing how sales of houses < 1,000 sq.ft. fell in half while > 3,100 sq.ft. fell little [corrected units].
Update: See Bob Casagrand's comment for more detail. (Thanks, Bob!)
Thursday, August 9, 2007
Low-priced sales fall most
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7 comments:
Those houses are grouped by size, not by sales price.
Thanks, that's what I get for posting after midnight.
This is a great chart. Thank you for posting.
Sorry to hijack the thread... but could wiser folk than I please check out 2155 N. Beverly Glen and tell me if it stinks of fraud? How is it that all of Beverly Glen Bl up through Bel-Air has sprouted for sale signs?
"How is it that all of Beverly Glen Bl up through Bel-Air has sprouted for sale signs?"
Once 20% per year appreciation went away, people realized it completely sucks to live on Beverly Glen Blvd.?
Re: 2155 N. Beverly Glen:
The buyer paid $880K in 4/07 and put a whopping 5K down.
If you go to my website you will see 2 additional charts, average price by size home and a chart that shows the proportional makeup of sales by size. The total give a complete picture of why using average price and median price in a changing market. Breaking everything down into sizes is the only way to get a picture of what is going on. I could probably even break mine down into smaller segments to get more accuracy. For a macro view I think mine will suffice.
Thanks for showing my chart.
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