Charleston real estate market report, home prices, May 4, 2009
The median price for a home is not always the best measure of home prices simply because it is a moving target so you can't actually buy a median priced home. It's primary value has always been as a measure of affordability by dividing the median home price by median income.
We discussed the College of Charleston home value index which measures the value of a similar home over time. I've suggested on several occasions that one of the reasons the median price has been declining recently is due to the mix of homes that have sold recently. Professor Tim Allen, Ph.D., Director of the Carter Real Estate Center at the College of Charleston's School of Business and Economics said this about the median price.
“When median home prices are compared across time, the insight gained about general home values in the region may be biased because houses with different characteristics are sold in the different time periods.”
For further proof that the mix of homes sold has been changing, all you have to look at is the market share for homes under $300k, $300k to $600k and $600k and higher. About 6 months ago when I first analyzed market share, here were the percentages.
And today, here are the percentages:
That's a pretty large change in just 6 months.
Statistics compiled by Howard Arnoff using the Charleston MLS as the source of data, information deemed reliable but not guaranteed.
So, having said that, here are the median and average prices and trends in the Charleston real estate market.
Median price
Average price
Year over year comparison
