Like properties
One of the reasons the Case-Shiller real estate index was so valuable during this tremendous real-estate bubble was that it sought to compare sales of the same property. It has proved far more reliable that the stats compiled based on median price, average selling price, etc..
Averaging a small sample of just over 50 sales is meaningless without the underlying data, and probably meaningless even then. If you had two properties that sold for $1.3 million in 2005 or 2006, and were sold for less than $1 million this year, that's pretty conclusive. Having properties that go from $200,000 to over a million means nothing, especially if a third or more of the properties are towards the high end.
I'll just guess that if anyone investigated some of the properties sold, which you can do if you have the address, you could find out what the previous buyer paid. Some realtors around here were trying to paint the impression that the real estate market was stable, and hadn't declined much. A simple search turned up a property bought in 2005 for $469,000, that is now listed at $379,000.
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10-24-2009, 11:41 AM
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