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%.