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Old 06-05-2008, 07:12 PM
 
Location: Rolando, San Diego CA 92115
7,173 posts, read 18,580,730 times
Reputation: 2946

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Quote:
Originally Posted by sav858 View Post
ummm, that is why they use median prices instead of averages. A $20 million dollar home sale can greatly throw off the average but not the median. Median is NOT the average.
You are correct. I believe he is speaking about incomes, which are really more relevant than prices in the long run, especially in a city full of retirees.

I just caution people about using sets of statistics to relate things to each other. Even though I do believe San Diego underpays and home prices are inflated, I do not believe there is any correlation between median incomes and home prices in the expensive major cities of the world.

Some cities their wealth is distributed closely to the median income, others have more extreme distributions at the high and low end, i.e. NYC, Coastal CA , Paris or London... the great places of the world. You can see that on the streets, feel it in the culture. San Diego is one of those places.
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Old 06-05-2008, 07:14 PM
 
Location: Rolando, San Diego CA 92115
7,173 posts, read 18,580,730 times
Reputation: 2946
Quote:
Originally Posted by sav858 View Post
Something to think about though is our property taxes don't double when homes prices do. I remember reading an article from the Washington Times or Post during the peak of the boom in DC about homeowners property taxes doubling in just 2-3 years along with the value of their homes.
Also we dont have 5000/season heating costs and god forbid you run the AC. A house in Smithtown LI will run you 13k/yr on a 550k house, that is over an hour from any job in NYC that will pay 100k++. Also on the whole the schools are much, much better in the suburban northeast.
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Old 06-05-2008, 07:24 PM
 
Location: La Mesa
349 posts, read 398,989 times
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Quote:
Originally Posted by sav858 View Post
ummm, that is why they use median prices instead of averages. A $20 million dollar home sale can greatly throw off the average but not the median. Median is NOT the average.

example: 5 homes sell for 250k, 350k, 275k, 400k, and 380K. The median price for those homes is 350k. But the average price is 331K.

They're both averages. 331k is the mean.
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Old 06-05-2008, 07:31 PM
 
Location: La Mesa
349 posts, read 398,989 times
Reputation: 164
Quote:
Originally Posted by Sassberto View Post
I just caution people about using sets of statistics to relate things to each other. Even though I do believe San Diego underpays and home prices are inflated, I do not believe there is any correlation between median incomes and home prices in the expensive major cities of the world.

Some cities their wealth is distributed closely to the median income, others have more extreme distributions at the high and low end, i.e. NYC, Coastal CA , Paris or London... the great places of the world. You can see that on the streets, feel it in the culture. San Diego is one of those places.

To say there is NO correlation in San Diego is a stretch. The correlation may not be as strong as in Topeka or Barstow, but it is still there. Most homes in San Diego are still bought by regular working folks.
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Old 06-05-2008, 07:40 PM
 
34 posts, read 55,512 times
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I dissagree,

The investment part of the equation is not second to "the lifestyle it affords".

They are one and the same unless you are frivolous, and a fool and his money are easily departed so the saying goes.

The reality is the lifestyle it will not afford if you make a bad investement on your home.

This is a buyers market NOW, demand more for your money is all I stress.

The market is inflated, this is a fact. How much so is contingent on how much the buyers are willing to spend.

Please see the writing on the walls below.

Equity in Americans’ homes falls to historic low - Mortgage Mess - MSNBC.com

Foreclosures set record in first quarter - Mortgage Mess - MSNBC.com


Quote:
Originally Posted by Sassberto View Post
Personally, I view the investment portion of home ownership to be ancillary to the lifestyle it affords, so again, "overpriced" is a subjective statement.
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Old 06-05-2008, 08:37 PM
 
2,022 posts, read 2,726,319 times
Reputation: 584
Quote:
Originally Posted by sav858 View Post
ummm, that is why they use median prices instead of averages. A $20 million dollar home sale can greatly throw off the average but not the median. Median is NOT the average.

example: 5 homes sell for 250k, 350k, 275k, 400k, and 380K. The median price for those homes is 350k. But the average price is 331K.
Are you really gonna knock me on semantics? Geez, I'm still in college and I hate math so excuse me for the mistake. I still don't know the difference between average and median. But thanks for the clarification.
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Old 06-05-2008, 09:19 PM
 
Location: SF Bay Area
10,408 posts, read 13,957,719 times
Reputation: 5571
Quote:
Originally Posted by JohnAlt View Post
They're both averages. 331k is the mean.
I stand corrected. It's been awhile since I learned that stuff....

Quote:
Originally Posted by tangodoodles View Post
Are you really gonna knock me on semantics? Geez, I'm still in college and I hate math so excuse me for the mistake. I still don't know the difference between average and median. But thanks for the clarification.
sorry, I was realllyyy bored at work and was just posting crap....but apparently I don't know the difference either.
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Old 06-05-2008, 09:24 PM
 
Location: SF Bay Area
10,408 posts, read 13,957,719 times
Reputation: 5571
Quote:
Originally Posted by Sassberto View Post
Also we dont have 5000/season heating costs and god forbid you run the AC. A house in Smithtown LI will run you 13k/yr on a 550k house, that is over an hour from any job in NYC that will pay 100k++. Also on the whole the schools are much, much better in the suburban northeast.
True, I hear schools in the Northeast are the best in the country overall so at least those high property taxes are for a reason . I don't really like Prop 13 overall though, I think it's part of the reason we have such high home prices and bad schools. But you can't really change it with how expensive property is now.
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Old 06-05-2008, 10:31 PM
 
Location: Rolando, San Diego CA 92115
7,173 posts, read 18,580,730 times
Reputation: 2946
Quote:
Originally Posted by JohnAlt View Post
To say there is NO correlation in San Diego is a stretch. The correlation may not be as strong as in Topeka or Barstow, but it is still there. Most homes in San Diego are still bought by regular working folks.
I am not trying to say there is no correlation. That correlation varies depending on the property. It is stronger in neighborhoods where you have many first-time buyers with close-to-median incomes, i.e. places like Escondido or Chula Vista - also places where you have large numbers of new homes.

Even someplace like Santee has really transcended it's own population's at this point, because so many people paid so little for those homes so long ago. That situation is all over this county. Those regular working folks are often sitting on 2-300k of equity even in the worst-case market.
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Old 06-06-2008, 04:24 PM
 
17 posts, read 37,769 times
Reputation: 15
Quote:
Originally Posted by sav858 View Post
ummm, that is why they use median prices instead of averages. A $20 million dollar home sale can greatly throw off the average but not the median. Median is NOT the average.

example: 5 homes sell for 250k, 350k, 275k, 400k, and 380K. The median price for those homes is 350k. But the average price is 331K.
OK, gold star quiz question. Can anyone say what the Mode is?

No cheating on Google.
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