Lansing Home market update

By
Real Estate Agent with Tomie Raines, GMAC

On the 15th of February, the day after Valentine’s Day, the Lansing State Journal feature an artivle on the front page declaring "WORST IN NATION: AREA HOME SALE PRICES PLUMMET IN 4TH QUARTER”

 

Is this really true?  The article talks about a reduction of the median home price of home sales in the 4th quarter.  The reduction in the median home price is more a result of the mix of homes sold then a reduction in the value of the homes sold.  What is the median?  It is the middle, not the average.  As an example, if five homes sold at $325,000, $115,000, $125,000, 215,000 and $100,000, The median selling price would be $125,000 – the one in the middle.  The average home selling price would be $176,000 The total value of all homes sold ($588,000) divided by the number of homes sold (5).

 

So what is the truth?  According to the Michigan Assciation of REALTORS®, the average home price in the Lansing area in December 2007 was $141,022 a drop of only 5.79% for the year and a drop from the 3rd quarter of 2.18%.

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