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The truth about the housing market, is it really on the rise?

Don’t be fooled by this popular headline, it is misleading. While the statement is accurate it doesn’t mean what you think.

 

The data that is being used to calculate this statistic compares the average sales price of housing nationally in May 2012 to May 2013. The average price of houses that sold is actually 12% higher.

This does not mean that a house that sold in May 2013 would sell in May of 2013 for 12% more.

What the data shows is that buyers are more active in the higher price segment of the market. This is good news, showing that the housing markets are becoming more healthy across all price ranges. However it does not mean any one property has appreciated 12% in the last twelve months. Good news for the market as a whole, not as good as it sounds for any individual property owner.

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