Here's why "averages" can be VERY misleading! Especially in Post Falls, Idaho.

I caught something out of the corner of my eye this morning. 

If you look to the right column of my Blog, on the screen you are reading this on, scroll down a bit and you will see a little Trulia widget that displays a year's graph of the average listing prices in Post Falls as well as Hayden.  It says LOCAL REAL ESTATE TRENDS. (For some reason, Trulia doesn't display Coeur d'alene stats, still haven't figured out why.)  This morning I noticed the graph showed a very sharp SPIKE in average listing price in Post Falls.  HOLY BANANAS, one might think.  What the Average Joe would have no idea about, is that on August 9 an exceptional property on the Spokane River in Post Falls went on the market for almost $20,000,000!  Right at the time the average listing price in that small town shot up! You can read about the Amway House here. 

Now, does that spiked average listing price accurately reflect the real estate market in Post Falls, Idaho?  Heavens no! 

Another pet peeve of mine is ADOM or average days on market.  So many listing agents and sellers will withdraw their property and then relist it, or let it expire, and then relist it, so as to reset the ADOM calendar.  Just yesterday I was investigating a property for a prospective buyer.  Although it is relatively recent on the market, a search of the history shows it has been for sale since May of 2007.  But the current short listing time is what is calculated to determine the ADOM for that house, as well as the ADOM for all homes in town.  I ALWAYS check the history of homes I am using as comparables when doing a comparative market analysis for my clients, whether buyers or sellers.

These are just a couple reasons why it is important to have a knowledgable professional to consult with as you strategize your real estate objectives.  Knowledge is power, but acurate knowledge takes a little more effort to uncover...