It’s the first thing on everyone’s mind when they think about real estate. The trouble is, the answer to that question isn’t always as straightforward as you might assume.
The reason for this is that everyone has a different idea of what makes a market “good” or “bad;” “up” or “down.” Let’s take a look at the state of the Lake Monticello real estate market in 2015 for example. . .
How is Lake Monticello Real Estate Doing in 2015?
Through the first nine months of 2014 (January-September), Lake Monticello experienced 172 sales and a median sold price of $170,250. Over the same period so far in 2015, Lake Monticello has experienced 157 sales and a median sold price of $185,000.
So, to go back to the original question– is the Lake Monticello real estate market up or down?
The honest answer is– it depends.
How you consider the health of the Lake Monticello real estate market depends on which metric matters most to you– total sales or median sold price?
All About Sales?
If all you care about is the number of sales, then you might think that the Lake Monticello real estate market isn’t fairing well this year. It is clear that the number of sales is down. This is most likely due to the fact that 2014 was the year in which most of the unsold foreclosure and short-sale properties were finally sold. That lead to the increase in transactions and the lower median price, as most of those homes were on the lower end of the market.
2015 has also seen lower inventory numbers than the past few years. When the market was correcting, there were more homes on the market than could be sold, but now that the market has turned around, we’ve seen less homes on the market. Less homes on the market means that there are simply less opportunities for sales. The lower inventory number is a contributing factor to the lower number of sales in 2015 compared to 2014.
The Economist’s View
On the other hand, most experts and economists are going to place the emphasis on median home price. When you see statistics in popular news articles about real estate markets around the country, the statistic most often cited is the median sold price of homes. It is also the median home price that is used to determine the appreciation or deprecation in a given market.
Perhaps most importantly, the median home price is most often used to determine what homes are worth across a given market. Therefore, a higher median home price means that homes are generally worth more. When experts, appraisers, or economists want to know if a market is rising or falling, they will often look first to the median home price in a market and track its movement.
In the case of Lake Monticello, the median price has risen almost 10% from 2014 to 2015 (year-to-date). This is surely good news for anyone who owns a home at Lake Monticello.
What About You?
For individual homeowners, who are usually only concerned about ONE home sale (their own), they will likely be pleased by the rise in appreciation, but would also want to know more specific information, like how homes similar to theirs have performed.
If you’d like to see how your home might fare on the market, or at least get an idea of how much it might be worth, we offer a free home-valuation tool that can compare your home to other similar homes that have sold in order to give you a price range you might expect from your home. CLICK HERE to use the tool. It only takes a few seconds, and it’s totally free.
If you know someone who has been thinking about their home value recently, please feel free to share the tool with them, or let them know that they can visit: MyCvilleHomeValue.com to use it from anywhere, even on their phone or tablet.