When you’re faced with a number of statistics telling you how the real estate market is performing, there are some key things to remember when you’re analysing those stats for yourself, or reading other’s interpretations of those stats.
For instance, unless you have 100% of the data and it is reported 100% accurately for that moment in time, stats are open to interpretation, meaning that because some data may be missing; the absolute “statistical correctness” may not be represented by the reported stats.
The real estate market can be fickle when it comes to reporting stats, where a house may sell well above market value on the last day for the reported period, it may not have made it into the stats, therefore not adjusting the stats to reflect a true representation.
Our advice for anyone analysing stats or reviewing the real estate market by reading statistical reports, is to make sure you watch the trends over a period of time rather than relying on one set of stats at any given moment in time. Remember that what you’re viewing could be an average and that to make an average, there has to be higher values and lower values and that there could be any number above or below that average.