Ron, Both Buyer and Seller in Pinehurst, NC

why is the average listing price so far above the median sales price?

Asked by Ron, Pinehurst, NC Wed Oct 26, 2011

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Ron,
In the Pinehurst Area single family homes and horse farms in the price range of $550,000-$1+M had only 3 sales in the month of September while $0-$549,999 had 69 with the majority of those sales being $175,000-$299,999. So, as you can see what is listed and what is selling has a large diversity. If you are buying and selling it is best to check the type of home and the price range you are working within.
0 votes Thank Flag Link Wed Oct 26, 2011
The "listing price" is the amount the Seller would like a Buyer to pay for a property that is for sale. It may or may not be based on recently completed sales of properties with similar feataures. The "median sales price" is the dollar amount above which 1/2 of the recent buyersactually paid and below which 1/2 of the recent buyers actually paid for comparable recent property completed sales. It is based on real prices and recent sales activity.
0 votes Thank Flag Link Wed Oct 26, 2011
The numbers are a function of the Statistics involved, and,
Both numbers are meaningless for a person buying a single home in an area, particularly if they are not buying it for an investment.
Its like the old cliche about the average family being 2.5 children.
The average and the median are useful for comparing eras and areas, but the numbers are dynamic, constantly changing.

Good luck and may God bless
0 votes Thank Flag Link Wed Oct 26, 2011
Hi Ron, Mostly because the higher end homes priced over $400,000 aren't selling. Our average selling price has always been aroun $250K, but in prior years that was because of a mix of high and low priced homes selling. Now, most of our sales are for homes priced between $150K and $300K.
0 votes Thank Flag Link Wed Oct 26, 2011
That can easily happen when a number of high end listings enter the market. In my home market zip code for example, there are number of properties priced well over $1M, but also a lot of condos and some older homes that have sold under $300K. The median is based upon 1/2 the units selling above that price point and 1/2 below, while the average is simply all sales prices divided by # units. Considering again my office zip of 32789 - if only a couple of high end listings come on the market at the same time, this scenario is likely to occur.
0 votes Thank Flag Link Wed Oct 26, 2011
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