L A South Bay Real Estate

Los Angeles South Bay Prices Up 28.1% from Jan. 2009

Posted on 30. Jun, 2010 by Barry Brickel in Market Forecasts, Uncategorized

LA South Bay Average Home Prices have sharply in increased since January 2009. As the chart below indicates, since January 2009 Average Home Prices have increased 28.1 % in the LA South Bay. Median home prices have also increased. The Average Home price was $532,358 in January 2009, for May 2010 the Average Home price was calculated at $682,088.

Average Home Prices are determined by adding the sold prices of all the homes sold divided by the number of homes sold. The Average Price is dependent on the cost of each unit price, each sold price directly affects its value.

Median Home prices are defined by the price at which half of homes are sold above that price and half of homes sold below that price. Median home prices are more  a measure of the prices of homes being sold not their actual value, it shows the prices at which the public is currently buying.

These are relative values, both Average and median prices are  not direct measurements of home value.

The media relies heavily on Median Home Prices for comparisons than Average Home prices and there is disagreement in the industry as to which value is more meaningful. I  am in the camp that believes average home prices are more meaningful for the purposes of tracking home values.