Peggy Chirico ~ Hartford & Tolland County Real Estate Blog

If you have been reading about the real estate market, it is very difficult to ignore the statistics surrounding the housing market.  It can also be difficult to understand and interpret what is meant when statistics are being reported.

Remember that math class so very long ago when you learned about different types of averages?

For a refresher, there were three types that we all learned:

MEAN: (or what we commonly call AVERAGE):  Add up all the values and divide by the number of items.

MEDIAN:  Arrange all the values in either ascending or descending order and select the one that is exactly in the middle.

MODE:  This is the most frequently occuring value in the range of numbers.

All three types of averages can be useful, depending on the situation.  But in real estate, medians often give a better picture of what is actually going on.  One closed sale at $900,000, for example, can really distort a mainly $200,000 housing market, showing a much higher number than really occurred. 

Here's an example.  Listed below are all the properties that closed in Ellington CT during November 2009:

• 25-28 Green Street                             $100,000
• 27 Elizabeth Street                              $128,000
• 41 North Park Street                            $192,500
• 3 McKnight Circle                                 $210,000
• 44 Ludwig Road                                   $240,000
• 21 Kibbe Road                                    $293,000
• 7 Daisy Lane                                       $400,000
• 1 Jonathan Drive                                  $470,000
• 10 Overlook Pass                                 $620,000
• 2 Monticello Circle                                 $647,301

If we took the average price, it would be $330,080. 

But if we took the median price, it would be $266,500.  That's quite a difference.  And most of the time, the median price will reflect a more accurate picture of what is going on in the market.

Another statistic to be wary of is Days On the Market.  Most of the time, the average DOM is reported, but again that might not show what is really going on.  One stubborn over-priced house that has been on the market for 365 days will skew all the other data.  It may be worthwhile to look at median DOM.

If you would like to know median prices and median days on the market in your area, contact me. I would be glad to provide that information.

Happy New Year!  It won't be long before many first-time homebuyers will be trying to take advantage of the first-time homebuyers' tax credit, and I expect that the market is really going to heat up.  In all that excitement, I don't want my buyers or prospective buyers to miss out on their chance of home-ownership because they don't know or forget a few facts.

Here is a great post by Dr. Chantal Saucier of Lafayette, LA that should be required reading for all buyers.

I know the holidays aren't even over yet and we have just experienced our first snowfall of the season, but my thoughts are already fast-forwarding to the spring season!

Spring is typically a very active time for real estate, but there is a greater urgency this year.  The first-time homebuyers' tax credit has been extended, and any first-time homebuyer who wants to qualify for it must have a contract on a home by April 30, 2010 (and close by June 30, 2010). 

In addition, Congress also passed a tax credit of $6,500 for people who are not first-time homebuyers.  Homeowners who have been in living in their current homes for at least five years may qualify for a $6,500 tax credit. 

What does this mean for you?  It means that now is the perfect time to buy a new home:

* The tax credits are great incentives.

* Interest rates are very low right now.

* Home prices are attractive.

* There are great buys out there now.

Why wait for spring to start your search? Start now while everyone else is waiting for spring and beat the rush!  There is the perfect new home out there for you, and I would love to help you find it.