How do you measure the growth of a local housing market?
When things are going crazy how much should you offer?
One great indicator is the ratio of the sale price to the list price...higher numbers mean more competition from buyers and a rising market...and that is certainly true here in Valley Center and Escondido!
This afternoon I took a careful look at our local markets...and found that the numbers reported from many news outlets really don't tell the entire story!
Everyone reports the "average" numbers...but we all know there is no such thing as an "Average Home"...each one is different...and every town has different quality homes...and they sell at different rates!
So...how do you make any sense out of it all?
Here in Escondido...and especially in Valley Center...the homes that are attracting all the attention are priced at or below the median sale price for a given area....so here is the trick!
First...determine sale to list price ratios for all homes sold.....Second...do the same thing for homes priced below the median sale price...
Then....graph it all out so you can see what's happening!
To save you all a little time here is what I found for our area....but this will be true for all of North San Diego County...and probably for every other metro area in the country!
Here is the data from this summer for Valley Center, Ca.:
And here is the data from the East Escondido Ca. zip code 92027 area:
Just look at the increasing ratios....we are definitely seeing some nice price appreciation...and the volume is up too!!
This all translates into some great price appreciation for buyers....so don't let the media naysayers make you miss the boat!
If you want more detailed information about Escondido, CA or Valley Center, CA....just ask!
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