***An important point I should add that I didn't clarify in this interview is that statistical data is easily misinterpreted, particularly when it comes to averages.
For example, if your boss gets a raise this week, the average income in your work place goes up. That does nothing for your bottom line. Likewise if this year the number of million dollar plus homes that sell in your market goes up or down, that affects the average price of homes in that market but does not affect the market value of your individual home.
When the newspaper headlines say the average price of homes is likely to drop by 14 percent over the next few years as they did recently it is more likely that the number of homes sold below the middle line price will increase and or fewer homes above that mark will sell, not that individual homes will loose 14% of their resale value.
Unfortunately attention grabbing headlines sell more national newspapers (on average) than carefully explained facts.
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