Are Prices Rising or Falling?
Real estate prices in Central Texas are both rising and falling at the same time. That’s right, because it all depends on how the data is presented. When housing prices are reported, they’re quoted by using the median price. To determine if prices are rising or falling, the price is widely compared to the same month one year prior. So when quoting the August ‘22 home sales, they are compared to August ‘21. In this case, prices are up 7%. In our current market, I like to compare prices to the prior month. When we compare August to July, the price of homes is down 2%. When prices are declining, I like to compare back to the peak of the market, which in our case, was May. Currently, we’re down about 8% from the peak. See, that’s a big difference. The same exact prices can either be up 7% or down 8%. A competent, effective real estate broker must keep an eye on these and other stats to properly advise their clients in making decisions.