Are “Traditional Sellers” Waiting For Fewer Foreclosures?
Want a shorthand for knowing when the housing market has truly turned around?
Watch what’s called “the median sale price” — statisticians’ term for the midpoint of a given group.
So, the median price of 101 sold homes would be that price which is lower than 50 of the prices and also higher than 50 of them.
Why the Median Matters
Why is the median price important?
In a market (still) flooded with foreclosures, the median is a low — and declining — number.
However, as the mix of sold homes includes more “traditional” sales and fewer foreclosures . . . that number heads up.