La Crescenta Home Values January 2017 Recap: Inventory remains low, and it continues to be a seller’s market for La Crescenta real estate. Home buyers face stiff competition. Multiple offers are common. Many home sellers use aggressive pricing, resulting in selling over the initial asking price.
Median Price Defined:
The median price represents the selling price of a given market’s “middle” home. If you line up all the homes sold in a specific period from the lowest to the highest price, the median price is the price of the home right in the center—half of the homes sold for less, and half sold for more. It’s important to understand that the median price differs from the average price. Unlike an average, which sums up all sale prices and divides by the number of homes, the median simply reflects the midpoint. This makes it less sensitive to extreme highs or lows.
The distribution of sales can still influence the median price. When more high-end properties sell, the median price goes up. This can happen even if the overall market stays the same. On the other hand, the median price drops when more lower-priced homes sell. The total number of sales also matters. Fewer sales mean each transaction affects the median more.
Therefore, while the median price is a helpful snapshot of market conditions, it should be viewed alongside other data points for a clearer understanding of market trends.
