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Bzzzt. Inaccurate headline. A million dollars was the median price for homes that changed hands in a 90-day period earlier this year in San Jose. It is not t
by honkhonkpants 10y ago
Bzzzt. Inaccurate headline. A million dollars was the median price for homes that changed hands in a 90-day period earlier this year in San Jose. It is not the price of the median home in San Jose.
- michael_storm 10y agoHave to disagree. If you've bought a home on the open market in San Jose in the last three months, the median price you paid is $1 million. That's what a "typical home in San Jose" "costs". Homes not on the open market don't have a cost; they have an appraised value. The market defines the cost.
- foota 10y agoI'm selling a home in Antarctica, where the median home value is a billion dollars, for a billion dollars. Interested in buying?
- princeb 10y agowell, now i'm selling two homes in Antarctica for 50 cents each.
- rjbwork 10y agoWow! The market dropped by 66% in less than half an hour!
- princeb 10y agonot the one downmodding you but.. haha no it doesn't! the median lost almost all its value because the median of (0.5, 0.5, 1e9) is 0.5
- rjbwork 10y agoYeah. It was just a dumb joke so i just said a regular old mean average. Am I still wrong? I don't really know much about real estate practices.
- ubernostrum 10y agoYup. The same is true of price tags in stores: that's not the price of the thing, it's just the most common price at which things of that class have recently changed hands, and is in no way indicative of what you'd pay if you bought one of them on the spot.
- ckastner 10y agoA price tag merely denotes the amount of money the current owner is willing to exchange his or her goods for. Recent exchanges may or may not be a factor. Buying on the spot usually means paying the price tag (as a trip down to the next supermarket would probably confirm), which would mean that the price tag usually is indicative of what you'd pay.
- roel_v 10y agoIf I'm understanding you correctly, you're claiming that the houses that changed hands are not a representative sample of the total housing stock. I don't immediately see any reason why that would be so.
- honkhonkpants 10y agoI'm just commenting that price discovery in illiquid markets is hard.
- roel_v 10y agoRight, I guess I'm saying that there is no indication the market is particularly illiquid.
- honkhonkpants 10y agoSales rate was lower in Q2 than in any comparable quarter since 2008, and the second-lowest in the last 16 years. http://www.trulia.com/real_estate/San_Jose-California/market-trends/ http://www.trulia.com/real_estate/San_Jose-California/market...