Same home sales
I have just completed some incredible research on the sale of homes this year that also changed hands back in the 2005-2008 time period. Generally, our stats always compare sales of this year with those of last year. While that is fine, they are not the same homes. The research that I did shows how much value we have all lost since the peak of the market in 2006. We are now selling homes that also sold back in the frothy period of 2005-2008. It was shocking to look in the tax records and see what they had sold for back then compared to what they are selling for now. Of the 617 single family homes sold in April of 2011, 485 of those were built prior to 2009 and thus had a chance of selling back in that 2005-2008 period. Of those 485, about 215 of those changed hands back in 2005-2008. The average home sold for 30% less this year than it did in the 2005-2008 time period. I think that I'm the first person to ever look at sales of the exact same homes over a period of years.
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Comments
It is important to express the proper decimal. If a yearly drop is 7%, your first factor is .93. If your second year over year decrease is 11%, your second factor is .89. If your third year over year decrease is 8%, your third factor is .92: Resulting in the following: (((.93)(.89)(.92))-1)*100) = 23.85% year 1 to year 3 real percentage decrease.
So why bother actually figuring out from year 5 to year 1 drops when that information is baked into the year over year statistics already.