Some thoughts on statistics and the value of your home…
“DID YOU KNOW?… Washington is the most common street named after a U.S. president, but an online listing site says homes on streets named after Calvin Coolidge have the highest value, 4.3% higher than the U.S. median.”
This just goes to show that statistics can illustrate nearly anything. This particular statistic is based on a very limited survey (details) and does not appear to have any data for our local market (Source). While interesting and informational, the data has no bearing on the value of homes on either Washington or Coolidge Streets in Corvallis or Albany Oregon (or any other town).
If you want to know the current value or a change in value of your property, it’s going to take more than application of statistics to figure out the real (and most accurate) market value. Average sales price, Median Sales Price, Average Change in Value, Percent of Increase, Absorption Rate and Months of Inventory, are all good things to know, but should not be applied to an individual property to determine current value.
If you want to know what your property is worth, you need to do an analysis of the market that includes: Information about the properties that are similar to yours and what they recently sold for, as well as the properties that are competing for the same buyer–the number of properties, the prices of those properties, the financing terms being offered, incentives, location, physical characteristics and condition.
In addition you need to have insight into the current market conditions–what are interest rates doing and what is the availability of financing? What is the current buyer demand? What is the state of the local economy? What are the implications of seasonal demand?
What you paid for the property, how much you owe, how much you need in proceeds and opinions of uninformed people have no bearing on the value of your property.
The statistics of a market can illustrate trends, give you a sense of the tenor of the market and are wonderful tools that provide guidance. A market analysis can give insight as to the real market value of your property and establishing a marketable price for a property.