Market Statistics That Matter

Posted By: www.SaraHibbard.com

Market Statistics That Matter

The media is flooding us with all kinds of data regarding the housing market and much of it is either untrue, riddled with inaccuracy, poor research or numbers that simply don’t make sense.

Yes, it’s true we’re just coming out of perhaps the worst recession of all time, and yes, property values have dipped considerably in many areas.

Believe it or not, those of us in Georgia and the Atlanta metro area are rather lucky.  Although, we witnessed a huge building boom, our home values did not inflate like other areas of the country such as New England, NYC or the west coast.  You can still buy a home or property here and not break your banking account to find a good home that fits your price range, wallet and lifestyle needs.  Although we've experienced our fair share of suffering, we have not suffered like other areas of the country.

And, all market corrections are not necessarily bad either.  But that’s another subject for another day.

Regardless, many publications and the news media in general continue to refer to “average sales price” (ASP) or “median sale price” (MSP) in their reporting of the housing market.  They even use these terms interchangeably.  This is inappropriate for a market in flux. 

When a market is changing, those two indicators are not wise to use if you’re attempting to get a handle on current market conditions. 

My personal observation is just that --  a personal observation and not necessarily based on any specific data from the National Association of Realtors, or any other group.  Rather, my information is based on MLS data locally and from feedback I receive from other agents in my network around the country.  Local MLS data tells the true story.  My research indicates that with both, market decline and market recovery, these two indicators trail real time market conditions by 12 to 24 months depending on price diversity of the area being measured. 

The reason for this is that in areas where homes vary greatly in price, all price ranges are not impacted the same by current economic market conditions.  Prices can also clearly be improving in many markets where ASP or MSP show a decline because the numbers of the sales in specific ranges do not resemble the “bell curve” upon which most statistical data is based. 

If you want a more reliable “real time” measurement -- a local "fact" based measurement of market conditions in your neighborhood, call a Realtor who specializes in running market statistics.  For the most accurate measurement of how the market is fairing in your area you need to look at local data appropriate for your neighborhood, school district, zip code.   If you call me, I'll look back over the last 3 to 6 months.  I'll review specific data in your own school district, your own zip code, your own specific sub-division and neighborhood and with like properties within a 1 mile, 3 mile and 5 mile radius of your neighborhood.  When I share with you the absorption rate, the days on market (DOM), the %Sold Price/Original List Price as well as the number of homes SOLD, PENDING and ACTIVE and those EXPIRED and WITHDRAWN from the market, you’ll have a more complete picture of the REALITY of market conditions in your neighborhood and how it is fairing overall in the recovery.  Wouldn't you rather know the "facts" based on current statistics in Lassiter High School district for example (if that's where you live), or your specific zip code rather than what is being spoon fed by the media? 

Sara Hibbard is a licensed Realtor in the state of Georgia and works mainly in the north Atlanta metro area.  Sara looks forward to answering your many questions regarding the Atlanta metro real estate market in general or specifics regarding the buying / selling / relocation process.  Call Sara for a a FREE Market Conditions Report for your specific school district, zip code, sub-division.  Sara is available to answer your many questions and concerns anytime at 404-660-2481 or via e-mail at Sara@SaraHibbard.com.  Visit Sara’s website at www.SaraHibbard.com.

Sara Hibbard is Glad Georgia Real Estate is on Your Mind!