The prior post showed that the market is in recovery, with news accounts and MLS data agreeing that median price is up about 15%. The question asked last time was “what accounts for the dramatic increase? Is it low rates? Better job market? Buyer confidence? All three?”.
The following chart uses the same data as the previous one and points to an overlooked reason behind the recovery. Maybe the low rates, better job market etc. were the influences that changed the mix of sales, but it seems to me that the increase in median is largely due to fewer distressed properties in the sample. Looking at the change in median price for traditional properties alone, the increase is more like 9%. But how does this relate to you? It all depends on the price range. Stay tuned for more…..