Putting the "Real" in Real Estate

Just like many parts of the county, the Lake Wedowee real estate market has experienced enormous change in the last 3 to 5 years.  We had the highs  in 2006 and 2007 then to the lows of 2009.   The chart below is very revealing of what is happening in our market. 

The lake market has taken a hard hit by the economy.  The number of houses sold on or near the lake has decreased by approximately 40% since 2007.  The average and median price has fallen from 25% to 30%.

While the lake market has struggled the other areas of  Clay and Randolph County stayed almost stable at approximately 90 sales each year and with little difference in the median sales price calculations.

What does this mean for 2010?  Predictions are good for traditional real estate up to the second quarter of the year, due to the tax credit still being available to buyers buying a new primary home.  Speculation after the first 6 months is sketchy due to the large number of foreclosures yet to hit the market and unemployment.  For the second home market… Prices will continue to adjust. 

The serious seller will need to price competitively to attract a buyer.  Sellers’ will be competing with bank foreclosures and short sales.  The buyers will be looking for the best deals.  

Median Definition: Median is a mathematical result that indicates that one half of the group is higher and one half lower. Median price of 101 sold homes would be that price which is lower than 50 of the prices and also higher than 50 of them.

Do not confuse this term with the average. They can be quite different for the same sample group. For instance, if you are doing a sold properties report and the homes are very evenly distributed, the median and average might be very similar. However, if the homes sold were weighted more to one end or the other of the price spectrum, then the median and average could be quite different.