OC Home Prices

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halfnote19_IHB

halfnote19_IHB

New member
Here is an article from Lansner where he talks about home prices in June 07 up from June 06.

As we all have seen in many of these post that it may be an artificial high. People rely on system from DataQuick for home trends, which shows the median home price for any given city. I am not a specialist in statistics, and maybe that's why I don't completely understand, but why do they report on median home prices and not average home prices? They are not the same thing in any way, and wouldn't the average home prices paint a more complete picture of the housing market?
 
Both average and median have it's flaws, but the median is more representative of housing prices for the general public. If you have a $25M Laguna Beach home as a data point, it will heavily skew the average but it would not skew the median as much (if you don't understand why you need to study the math behind it).

But the bottom line is 99.9% of homes are worth less in June 07 than they were in June 06. There is no point in debating this.
 
I understand how the $25M home in Laguna Beach could skew the ave, but all the homes in that area should be priced comparably. There should not be homes priced $24M below that one in the same zip. If so let me know where I can get such a deal in Laguna!!!
 
The $25M was an extreme example to make a point. But actually it is not.

In 92651, I see homes for sale priced from $67M to $800k.

So, do you understand now?

...
 
I have been checking out 92651 and I have found some good deals at $1.5mil and below. There are many that are $15mil and above. Anyway I posted a comment on Lansner's blog, well if it gets posted, that I am willing to sell my house for the median price. If anyone else thinks that the median value is true I have an 2800 sqft SFR, single story, 10k sqft lot, needs some upgrades, new exterior paint, new roof and new high end double pane windows and sliding glass doors for sale for $1.1mil. My stats are the median for the area so the median price is right and it is almost 30% less than last year. If anyone is interested the price is firm regardless of the fluctuations in the median price.
 
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