Statistics Tell Different Stories

by ritasimpson on November 13, 2011

in How's The Market

 

 

It is important to note that statistics

although very helpful in guiding us in understanding what has happened in the market, must be made clear as to what they are measuring. One must ask what data is going into this graph? is it the section of the  Malibu Real Estate market that I am interested in investigating or is it a jumbled mix of  Malibu properties at levels that will skew the picture of what is actually happening in my specific area of interest? remember averages of  home sales in the Malibu area don’t give an accurate picture and median prices of Malibu homes just give you where the majority of the action is. In areas where the sales volume is small like Malibu, a small community, the input for the calculation becomes more relevant in determining the validity of the conclusions. The differences in the types of properties compared can totally skew the results.  Malibu has a wide variety of property types for the small community it is,  if you were to pull the statistics on the volume of sales of land side properties in Malibu for the last six years, you would find that at each point in time you would get a different answer.  But comparing June 2006 to June 2011 the volume of sales decreased by 43 % during that time  the median price of sold  properties decreased by 15.8% and the average sold price decreased by 3.6 % while at the beach, the volume of sold properties decreased by 28% during the same period and the median sold price decreased by 11.2%  the average sold price by 8.6%.

Take a look at the stats below from  Trulia, they tell a different story because it is jumbling many different incompatible sectors. If you were in the market for a condo or for the top of the market property you could not rely on this. You would need a more refined analysis, which an experienced and qualified agent can provide.

 

Malibu median sales prices

Number of sold homes in Malibu

Malibu average price per square foot

 

 

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