Sunday, March 01, 2009

Hey, can you spare $7,500?

According to Realcomp the median price of a home sold in Detroit in Dec was $7,500!! For those that have forgotten their stat class lessons, median prices are often used because it shows the price at which and equal number of homes sold above and below that price. Averages are often skewed by one or two high or low sales so median home sale prices are often a better indicator of market health (or illness). From the Chicago Tribune...

"It may be tough to get financing for a new car these days, but in Detroit you can buy a house with a credit card.

The median price of a home sold in Detroit in December was $7,500, according to Realcomp, a listing service.

Not $75,000. Remove a zero—it's seven thousand five hundred dollars, substantially less than the lowest-price car on the new-car market."

So try to keep that in mind the next time you hear that housing prices might have bottomed.

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