Media Reports on Real Estate Numbers
Reporters, journalists, and news readers have a difficult job. They have to take raw data, and the opinions of several experts or specialists from real estate related industries and come to a coherent conclusion. They then have to repackage the information into a very brief story to fit the time constraint of the broadcast. In my view, it's unfortunate that most media members seem to have a very minimal understanding of real estate numbers, markets and statistics.
Since the reports are done for a broad audience, I understand the stories cannot be as granular as an agent sitting with a client to explain what is happening in the local market down to the subdivision level. But the general impression given when something comes out like the Case Shiller Index is that's the true picture of the market. In a general sense, I can agree with that.
But I compare broad real estate market numbers pretty much the same as a national weather report. It may be raining in Houston, but dry as a bone here in San Antonio. It's interesting and maybe the prevailing winds will send the weather system our way, but maybe it will not. Pretty much same with real estate numbers. Sometimes we're affected by what happens in other areas and sometimes we're not.
| Price Range | Sales Year to Date | Current Listings | Avg Sales/Month | % Total Sold | Months Needed to Sell Available Houses |
| $50,000-$99,000 | 2,253 | 1,858 | 265 | 20.1 | 7 |
| $100,000-$149,000 | 3,630 | 2,634 | 427 | 32.4 | 6 |
| $150,000-$199,000 | 1,655 | 2,360 | 195 | 14.8 | 12 |
| $200,000-$249,900 | 1,472 | 1,222 | 173 | 13.1 | 7 |
| $250,000-$299,000 | 826 | 896 | 97 | 7.4 | 9 |
| $300,000-$349,000 | 543 | 527 | 64 | 4.8 | 8 |
| $400,000-$449,000 | 228 | 278 | 27 | 2.0 | 10 |
| $450,000-$499,000 | 144 | 247 | 17 | 1.3 | 15 |
| $500,000-$599,000 | 172 | 368 | 20.2 | 1.5 | 18 |
| $600,000-$749,000 | 135 | 294 | 16 | 1.2 | 19 |
| $750,000-$999,000 | 77 | 286 | 9 | 0.7 | 32 |
| $1,000,000-S1,999,000 | 66 | 222 | 8 | 0.6 | 29 |
| $2,000,000-$2,999,000 | 5 | 35 | 0.6 | 0.04 | 60 |
OK Wayne, nice chart, bunch of real estate numbers, but what does it mean?
I think most media outlets would take the chart, and report the average sales price for homes in the area, the inventory level as compared to some time in the recent past, and some discussion of the foreclosure rate.
But I see these real estate numbers telling a different story, particularly as one looks at the segments.
Let me point out three areas to consider.
- Over 50% of the houses sold this year were less than $150,000,
- The inventory level for houses in this price range is stable at about 6 months.
- There is a significant over supply of houses priced over $250,000.
I will have another chapter to add to this post tonight. This chart has other stories to tell too. I think I can provide counter arguments to the above three points. More to follow.
I would like to help you understand the local real estate market so you can have success in either buying a home or selling your house. The real estate numbers tell part of the story, but it's helpful to have someone help you interpret the numbers. Call on me for assistance.
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Wayne Johnson Tel: 210.483.6329
18756 Stone Oak Parkway
San Antonio, Texas 78258
Texas Real Estate License # 0566780
email: wjohnson@cbharper.com
Texas Law requires all real estate licensees to provide the following information about brokerage services:http://www.trec.state.tx.us/pdf/contracts/OP-K.pdf
The views, opinions, and comments expressed in these blog posts are mine and mine alone. They are not necessarily the opinions or well reasoned analysis of Coldwell Banker or Coldwell Banker D'Ann Harper Realtors®, nor have they been approved, blessed, or sanctioned by any other person or persons, real or imagined, alive or dead. Blame me and only me.
©2010 By Wayne Johnson-All Rights Reserved *Media Reports on Real Estate Numbers*
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