Southland Regional Association Of Realtors Say "Median Price Rises"
Home Sales Down, Yet Median Price Rises
![]()
The Southland Regional Association of Realtors reported that a total of 552 single-family home sold throughout the San Fernando Valley during August, which is a 33.1 percent drop from the 825 sales in August 2006. Condominium sales were 40.7 percent below last year
The interesting thing is that the median price of these single-family homes was $645,000, up 5.7 percent compared to a year ago. The August median price was $10,000 below the record high median price of $655,000, which was set in June.
The condominium median price of $389,000 was down 2.8 percent from a year ago and off 4.5 percent from this July. The record high median condo price of $415,000 was set in February 2006.
What is "median Price?" The median price is the price that is midway between the least expensive and most expensive home sold in an area during a given period. During that time, half the buyers bought homes that cost more than the median price and half bought homes for less than the median price. The median price is an indicator of which price range is most active. Not all price ranges experience the same market activity at any given time.
So does that mean my home is worth 5.7% more then it was last August? No, it only means that half the buyer’s are purchasing homes that cost less than $645,000 and half bought homes that cost more. Why should you care? I don’t know? What is your home worth? Bottom line, it is worth what a buyer will pay for it. And there are some buyers out there buying just not as many. Pricing your home correctly has never been more important.
It has been my experience that a lot of buyers, although out there looking at homes, are not ready to buy. They believe, rightly or wrongly, that the bottom is about to burst and all the prices will come tumbling down. Is that a good strategy? Not usually. Chances are IF (and that is a big IF) prices do come tumbling down, interest rates will go flying up. Also, there will be more buyers competing for the same homes.
My advice…..don’t wait. There are a lot of homes to choose from, if you find the home of your dreams buy it. Interest rates are still as low as 5 or 6 percent for a 30 year fixed and you don’t even have to have perfect credit.
Jim Link, the Southland Association Of Realtors’ executive vice president, says that "Three elements - consumer uncertainty, misinformation and false expectations - may keep home sales in check a short while longer, at least until people see the incredible wealth of current opportunities and accept the long-term strength of the local market," said "The psychological effect of the market slowdown after a years-long boom has been more powerful than the actual impact," he said. "Secondly, buyers who lack professional guidance and local expertise hesitate based on wrong or incomplete information. Finally, some people think prices will drop and that they can time the market, despite ample proof that waiting rarely works." 
BUYERS!!!! THIS IS YOUR MARKET....GET OUT THERE AND TAKE ADVANTAGE OF IT.