Average US new home price $237,000?

[deviltrader]

Quote from RoughTrader:

They are NOT similar

The median of 100 homes sold for $100k and 1 home sold for $1 million is $550k.

The average of 100 homes sold for $100k and 1 home sold for $1 million is
( 100 x $100k + 1 x $1 million) / 101 = $108.9k

The median is a dirty little method the industry uses to mask the larger volume of declining home prices with the fewer transactions of higher-end homes.

RoughTrader

For large population samples, median and average are virtually the same. The larger the sample, the more they converge.

WRT to national housing numbers, the population is large enough that median and average should be the same.

ps: it's obvious from your example #1 that you don't know what "median" is.

 

[traderdragon2]

The market leads everything. I just noticed that HOV is 82% off its high!!!! RYL 60%. TOL 61%.

The housing stocks have crashed as badly as NASDAQ stocks after 2000.

Now people are calling for a recovery in 2009. I guess everyone got tired of the "bottom is in" call every week by the idiots at the NAR LOL

 

[RoughTrader]

Quote from deviltrader:

For large population samples, median and average are virtually the same. The larger the sample, the more they converge.

WRT to national housing numbers, the population is large enough that median and average should be the same.

ps: it's obvious from your example #1 that you don't know what "median" is.

1) All RE markets are LOCAL. Nationwide statistics mean nothing. Even local markets have sub-markets. Market populations are not necessarily that big, particularly in affluent "bubble" zones of popular areas. For example, in the silicon valley, the higher transaction prices of home sales in Palo Alto and Cupertino are on average more than double those of San Jose home prices, but the volume of sales in San Jose FAR EXCEEDS that of both Palo Alto and Cupertino combined over recent years. You see what I'm getting at....

2) Review your math. In a list of numbers, the median is mid-value of the list. In the event that the mid-value lies between two numbers in the list, the median is the split difference.

RoughTrader

 

[u21c3f6]

Arithmetic, Statistics. the middle number in a given sequence of numbers, taken as the average of the two middle numbers when the sequence has an even number of numbers: 4 is the median of 1, 3, 4, 8, 9.

In a list of (100) 100K's and (1) 1 million, the median is $100K.

Joe.

 

[TGregg]

Quote from u21c3f6:

Arithmetic, Statistics. the middle number in a given sequence of numbers, taken as the average of the two middle numbers when the sequence has an even number of numbers: 4 is the median of 1, 3, 4, 8, 9.

In a list of (100) 100K's and (1) 1 million, the median is $100K.

Joe.

Exactly correct. For a list composed of one hundred 100k prices and one $1000k, the median is exactly 100k.

 

[DHS]

Quote from RoughTrader:

They are NOT similar

The median of 100 homes sold for $100k and 1 home sold for $1 million is $550k.

The average of 100 homes sold for $100k and 1 home sold for $1 million is
( 100 x $100k + 1 x $1 million) / 101 = $108.9k

The median is a dirty little method the industry uses to mask the larger volume of declining home prices with the fewer transactions of higher-end homes.

RoughTrader

Can RoughTrader get an Amen?

Amen!

 

[deviltrader]

Quote from RoughTrader:

1) All RE markets are LOCAL. Nationwide statistics mean nothing. Even local markets have sub-markets. Market populations are not necessarily that big, particularly in affluent "bubble" zones of popular areas. For example, in the silicon valley, the higher transaction prices of home sales in Palo Alto and Cupertino are on average more than double those of San Jose home prices, but the volume of sales in San Jose FAR EXCEEDS that of both Palo Alto and Cupertino combined over recent years. You see what I'm getting at....

2) Review your math. In a list of numbers, the median is mid-value of the list. In the event that the mid-value lies between two numbers in the list, the median is the split difference.

RoughTrader

1) The original statistic of this thread was for the NATIONAL median, it wasn't for the median in Palo alto. You said the median and average are not the same, now you are talking about local markets? huh? Are you intentionally trying to change the subject?

2) You should review a statistics book before you stubbornly continue with this.

 

[trader225]

Don't hope for a recovery.
The comps will kill you.
Some people have to sell.
When they sell for less than the last comp,
there is a new comp to compare the other houses against.

 

[BJL]

Quote from RoughTrader:

The median of 100 homes sold for $100k and 1 home sold for $1 million is $550k.

Can I trade with you?

 

[murray t turtle]

Quote from nazzdack:

It would be better to look at regional numbers instead of a national number.

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Exactly, Nasdaqqq, i believe you just made an excellant point;
and look weekly or more often..

Interesting ,above average home in many respects,/many months on my rural road;but lately, they are advertising it recently, as a short sale/reduced.

And RE related, talking to a neighbor who makes money buying/holding, ''making hay while the sun shines'', mentioned the need for rain.

And some REALTORS have not hidden price reductions, but advertising short sales.