What is the Real Estate Story?

Headline screams bad news:  Region home sales drop sharply

Yet this is the cut and paste quote from that article right now as I type:

“Average home prices rose 3.7 percent, from $138,907 last year to $151,556 last month, according to RealSTATs.”

I’m missing something in the math on that?  Later another quote is that regional prices for new home construction experienced “a 13.3 percent increase in the median price of a new home to $275,000.”

Given that national real estate markets are extremely anemic most everywhere… I would say this is one of the bigger economic stories for the region.  Not sure most readers will realize that, but those numbers are quite a story.

and I saw this yesterday, but for some reason thought it was really from something that came out previously.. I guess it is new.  See:  Region Economy Gets High Rating

and just to follow those stories… quite a coincidence, but:   Google delays site selection for project.  Who knows what that means for the handicapping.

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1 comment to What is the Real Estate Story?

  • Mr Briem,
    You are correct in pointing out the math error. The regional average home price increased 3.7 percent from November 2008 to 2010, and 9.1 percent from November 2009 to 2010:
    Nov 2008–$146,108
    Nov 2009–$138,907
    Nov 2010–$151,556
    The reporter misquoted the RealSTATs report. Thank you for pointing out the error.
    The way I interpret the price increase is this: higher end neighborhoods are faring better than the lower end ones. Buyers in higher end markets are more able to borrow, and therefore buy. My hunch is that drops in activity in say, Cranberry Township, may not be as steep as the declines in areas like Sharpsburg and that equates to an increase in average sale price.
    Is that a story? Sure. The moral: Those in stronger financial shape are better equipped to cope in tougher economies.
    Thanks again,
    Dan

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