Average and median price statistics don’t always tell the full story of our real estate market. This Denver Business Journal by Andrew Dodson correctly points out that inventory is way up (36% year-over-year), and that the median sale price has slowed (down in February and up only slightly at 2% in March).
An inherent problem with these statistics is that they don’t differentiate between the size of homes. The statistics just lump all the homes together.
Smaller homes are priced lower than larger homes
Consequently, if the mix of sold properties includes a lot more small homes, then the average AND the median sales price MUST GO DOWN. The average value of a home of a given size probably still went up modestly.
Dodson’s article is statistically accurate when he says the prices are down, but that is largely due to an increased inventory of condos that are priced lower. If you speak to buyers shopping for smaller homes right now they will certainly tell you that the prices have gone up, not down.
Other good talking points from Dodson’s article:
- “While it’s still a seller’s market, buyers are taking advantage of the increased inventory and keeping their options open.”
- “Buyers are becoming more discerning and compelled toward homes that are turnkey.”
- The Denver Condo inventory is up 64% from a year ago with a median sold price at $300,000. “Buyers who have been saving and waiting to pull the trigger on a home may go that direction.”