If current indicators continue, this year is going to be very interesting. The Median Price and Average Price are unnaturaly high because the number of homes in the lower price ranges are low. From the Cromford Report:
January 18 - Overall we have fewer homes available for sale than at the same time last year, but the picture varies a lot by price range:
Active listing counts above exclude those in UCB status Over $300,000 we see plenty more supply than last year at this time but under $200,000 there is far less. When demand grows it is likely to grow at the bottom end first, creating a shortage. The top end of the market has plenty of supply and this would remain true even if demand were to increase significantly in this segment. The other implication of this change in the mix is that the average price for active listings has increased a lot since since year even though the asking price of any specific home has not. This effect can lead to a lot of misunderstanding by sellers who can easily get over-optimistic.
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