I admit it, I'm a real estate junkie. I take classes, watch HGTV real estate shows, and read the real estate section in the newspaper. I picked up a December real estate section (it must have been on the bottom of the stack) and I notice the Median Home Prices for Los Gatos mountains were shaded in red. Wow, a 41% increase, while most other areas are still showing green at 21% to 40% loss. Having some knowledge about statistics I read further to gain an understanding of exactly what the newspaper was trying to share with us.
For your understanding Median Price is the middle of all sales, whereby 1/2 of the prices are below and 1/2 of the prices are above. Average is calculated by taking the total of all sales and dividing by the number of sales. The paper stated it was comparing the most recent 20 days for the same time period of last year, and that there were 5 homes sold for an 80% price increase and 44% decrease in volume. So what does this really mean? It means that for this time period one or two homes sold which were higher in price than this time period last year. Does that mean that 95033 has really increased in value? NO. Taking a one month snap shot doesn't give a true picture of the real estate market.
To accurately understand the trends of real estate, one must follow it on a regular basis. Track the days on market, the percentage of sales, the absorption rate, sale price compared to asking price, and comparing similar properties. These numbers in the paper are entertaining, but unrealistic to expect it to be a true reflection of value. If homes selling last year were in the $400,000 price range and this year two homes were $400,000 and two homes were $900,000 the medium price would be skewed.
Fast forward a couple weeks, the red shade is gone and replaced with green. Prices are down again. Real Estate usually doesn't fluxuate that quickly unless a tramatic event should occur. So when reading statitics press forward. Ask pointed questions, understand the who, what, when, where, and why of the numbers and what it means in your situation.
My listing at www.SchultiesRd.com came back on the market and the seller has dramatically reduced the price down to $399,000. Here is what is special about this home.
It is located in the Los Gatos Mountains. Approximately 15 minutes in either direction from downtown Los Gatos or to the beach. Located in a sunbelt with mature trees. One acre with a sence of privacy, mountain top views, yet near enough to neighors to borrow that cup of sugar you forgot at the store.
You have three separate spaces located under one roof. The main house is a 2 bedroom 1 bath home. Then a breezeway to the cottage, a 1 bedroom fully contained, unit with full size kitchen. These two are separated by a laundry/mud room. So each may use the laundry room without disturbing the other. Next to the three car garage is a large studio, approximately 500 sq. ft., it has a 1/2 bath plus a separate utility sink, and high ceilings.
Home is priced to sell. Put some love into this home and own a little "peace" in paradise.
This by appointment only home will be held open to potential buyers this Saturday, March 6th, from 12:00 to 3:00.
It is a beautiful newer Victorian style home on about an acre of land surrounded by mature redwood trees.
This home was previously listed for over $1.4mil and is now priced to entice those ready williing and able buyers. Come take a look.