A client reached out while creating some comparison charts in hopes to talk about the differences in the market this year verses last. He knew the market was better but questioned the strength. Together we looked at the price per square foot today verses this same time last year for Lakewood, CO 80228. As you’ll find by looking at the chart below, there was a pretty good increase:
A couple of weeks later this same client came back regarding that same area after looking at the median list price this year verses last. As the chart indicates below, the median price this year is the same if not lower than last year. He wondered why the market appears to be falling if the price per square foot is far greater than it was last year?
This is where AltosXplorer shines! With AltosXplorer you have the ability to access data outside the box, which in turn allows you to figure out what’s really going on in a particular market. With 80228, it was unique. My first thought was to look at YOY Price, determining the percentage of change this year over last.
This chart didn’t help us understand anything more than the median price chart with a 1% change. We needed to look some place else. Since the change in price per square foot was so different we chose to look at the median square footage of homes this year verses last year.
Here’s the answer: Notice that the homes listed this time last year were significantly larger than this year, 3,600 sf verses 2,800 sf. So, although the median price may be down or even neck and neck, what you get for that price is smaller. So the market isn’t softening, the prices have gone up. It’s just that the inventory available has smaller square footage. This example demonstrates why looking at just one statistic doesn’t cut it. Imagine having this type of information for your seller or for your buyer. Using AltosXplorer you can go outside the box and really show your expertise.
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