Market Conditions in Camas>Question Details

Dom1992, Renter in Camas, WA

Why is average listing price and median sale price so far apart in Camas?

Asked by Dom1992, Camas, WA Sat Mar 31, 2012

Trulia is showing an average listing price of $417,000 in zip 98607, while the median sale price is listed as $151,000. I interpret that to mean the market is severely overpriced? Would that be correct?

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11
In short no, those specific numbers don't mean that homes are overpriced. In fact those numbers by themselves don't have anything to do with the value of a home, and here's why.

One shows the "average" price of homes coming on the market, and the other shows the "median" price of the homes that sold and are now off the market. The other thing to know is that "average" and "median" don't mean the same thing. And while most people understand the definition of the words "average" and "median" individually, very few understand how to interpret what it means when compared to each other, and are different?

How an "average" list price of $417,000, and a "median" sale price of $151,000 could be interpreted is that there is a pretty good size gap between the most expensive priced home and the least expensive priced home. It could also just mean that last month the homes that sold were lesser expensive homes, and the homes that came on the market were higher dollar homes? There's a lot of other variables you'd need to know for sure and ones that an experienced Realtor who specializes in that area should know. For example the actual "average" sold price last month in Camas was $309,100, which is considerably more than the "median" sold price of $151,100.
0 votes Thank Flag Link Thu May 3, 2012
Your most recent comment has a lot of truth to it... there are homes in camas at 58,000 and there are homes at 600,000 which explains the seemingly large disparity between the median and the average price. Each property is priced based on whether it is a large lovely home by the lake or a near tear down.

Below is a link to a map. within the map (zip code 98607, camas) all listed properties are shown.

Im confident that you'll find each property priced to the respective size, age, condition, and location. You'll also recognize that "camas" 98607 as defined by the zip code boundary encompasses a large geographic area, an considerable diversity in the demographics.
Web Reference: http://bit.ly/JJcVQG
0 votes Thank Flag Link Sat Apr 28, 2012
everyone is being to nice!! they are trying to beat around the fact that everything in Camas is over priced. Unless your looking to live on lookout ridge or down by the lake in a million dollar home than dont spend more than $250000 on a home and make sure your no where close to the mill unless you want to wake up to horrible smells and the sound of trains all through the night.
0 votes Thank Flag Link Sat Apr 28, 2012
You cannot determine that the market is "overpriced", because of the discepancy between median sale and average list. not at all.

The diversity within this geographic location is huge! you take one sale that occured during the time in question, it may have been a 70 year old bungalow by the railroad tracks, or a mobile home on an acre,? who knows. on the other hand, the average listing is likely to include the lakefront estates on lacamas lake, or riverview houses on the ridge.? impacting the average list price significanly.

To effectively price any property (or anything for that matter), you must compare recent, previous sales of LIKE PROPERTIES. thats like saying a single grape and a single water melon are both fruit and therefore the watermelon is overpriced at 6.00, because the grape sold for a dime? geeeez
0 votes Thank Flag Link Mon Apr 23, 2012
Generally speaking, you are correct that the market is over priced. List prices are often known as fantasy land. Sold prices are what brokers sell homes for in the area.

Your question asks for a comparison between average and median prices. There is often a significant difference between the two. Therefore your question begs a question in response, why is it important to compare the average list with the median sale prices?
0 votes Thank Flag Link Sun Apr 22, 2012
Median or average prices have little to do with determining a market value for any particular piece of property.

Its possible that during the period which you defined, only homes in the lower price ranges sold, yet the listings not yet sold, averaged much higher.

Medians and averages are for a given period for a certain duration of time. We have those numbers EVERY month, calculated from the sales monthly.

This has very little to do with pricing a particular piece of property or preparing a current market analysis, as each property would be reviewed on the basis of size, age, condition, neighborhood, finishes, fixtures and ammentities, ...and more.

I hope you received the answers you were looking for.
0 votes Thank Flag Link Sun Apr 22, 2012
Statistically speaking, mean (average), median (the middle number of all sales prices), and mode (the price with the most houses for sale at that price) are quite different, as you can see from their definitions. Thus, it is not unusual for the average price to be quite below the median price, which is dependent on both the lowest and highest sales prices. Realtors usually provide the Median price range, which is the price range in the middle for that area (but NOT the average).
0 votes Thank Flag Link Sun Apr 22, 2012
A good Realtor will not only give you all of those numbers, they'll give you a specific time range so you can see the trends.
Flag Thu May 3, 2012
There could easily be several high end homes listed, but not sold during the period of time viewed, while the majority of the homes that have sold during the same period are nearing your 151 "median".

Say for instance, there are 20 homes listed and 5 of them above 700,000 but non have sold in the period. Those listings would be calculated into the average of the 20 homes.

and those sold.. perhaps 5 sold at 125k, and one sold at 300k, your median would reflect the average.

Now, I just took a stab at those numbers, ... but I think you can see, how the numbers and averages can be affected by the actual details.

When looking for an approximate value of any piece of property, many things are taken into consideration, to be sure you are comparing apples to apples. Camas (98607) actually covers a very large geographical area, and also has a tremendous economic diversity, with some properties under 150,000 and others over 1,500,000

If you have a particular question, or property that you wish to have a market analysis for, I am happy to help'
Gloria Matthews
http://www.ggmatthews.com/market-trends
0 votes Thank Flag Link Sat Mar 31, 2012
Best answer.
Flag Fri Feb 22, 2013
Trulia is not in my opinion either up to date or accurate. I am not sure where the $151k price came from but in Camas it is way too low(Maybe that is Vancouver's Aveage Price). There are many nice areas in Camas where the sale pices have not fallen Under $300K and some (lLacamas Shores for instance)that even the lowest sale prices are very close to $500K). Camas has the best schools in Clark County and continues to be one of the most desireable locations to live as property taxes are lower than Portland, Oregon and there is no income tax!(Oegon income tax rate is 9%)
0 votes Thank Flag Link Sat Mar 31, 2012
It is the way average and median price are calculated one high priced listing can affect average price when a few homes are on the market hope that helps
0 votes Thank Flag Link Sat Mar 31, 2012
There are only 9 active listings and in my opinion some of them are are asking maybe more than they should be. If you have a specific property in mind you can give me a call or e-mail me the address and I could tell you things like what the seller paid for the property and what I think the property is worth.

Alain Picard
253-861-7386
apicard88@yahoo.com
0 votes Thank Flag Link Sat Mar 31, 2012
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