When evaluating market prices, the median is considered a more reliable
indicator than the average. This is because an average can be dramatically
skewed by very low or high numbers. For an example of this, take a look at
the price graph to the right for the town of Madison. Real estate market reports in the
media always refer to the median price of a home and the median market prices
available here provide you with a fast reality check on the value of your
current home or the appropriate price to pay for a home you want to buy.
The volume charts that accompany the price charts measure the number of
units sold per quarter or month.
Volume (along with price) has been declining in greater New Haven since 2005.
My market sentiment charts look at another aspect of market activity by comparing
listings to contracts in a given quarter. From 2002 through 2005, inventory
(think listings) was being absorbed by the market (think contracts) at a very
steady pace. Beginning in 2006, the number of new listings soared while buying
activity declined. That was the start of the current bear market for real estate
in our area.
