Median or Average - which is a better gauge?

There was an article in the paper this week about the drastic price drop in home prices in the Tampa Bay area. Big headline, prominent placement - imagine that. In any event, the numbers reflect the market accurately. Or so it would seem. I pore over market numbers every month when they come out and try to see what it will mean for my clients. I am a numbers guy, so I love this stuff. I have seen this same article appear every few months it seems and it is only when the headline can say something like "biggest drop since..." or similar catchy headline. If you read the entire article, which I think most do not, it does refer to the median price drop but it also referred to the average prices only dropping 5% or so since 2006 in that month. That doesn't garner the bold headline. The truth is evident - the averages are down from last year and I think that will continue for some time. This silver lining is that for certain homes, this is a pretty darn good time to sell a home. If you look at what the median represents and then look closer at the numbers the story that I can pull out is that the largest price block in terms of sales is in the $200K range. It is actually fairly healthy relative to other price points. Not robust, but healthier. If you apply some price reduction to the price segments across the board and couple that with a growth or strong segment of homes selling in the high $100's and low $200K's, the median must go lower. If you have a house to sell in that price range the numbers could actually be good news.

Now back to the reality. I have said this for over a year to my clients. The homes that are selling are those that are in the best condition that they can be in. They are clean, show well, in good condition, and most importantly priced as well as they can be. No secret, no crazy incentives. Just a good product at a good price.

Does that guarantee a sale? I wish it could, but it is a must if you want to sell your home in this challenging market.