Trends in median price per square foot
Scott P. Rogers
One problem with tracking median home sales prices in a relatively small market is that median home sales prices can easily be swayed if a large number of small (or large) homes sell in a particular month or quarter.
To try to account for the size of the home, I decided to take a look at how the median price per square foot has changed over the past six years.
This graph has a few irregularities, but overall seems like it might be a reasonably trustworthy indication of how home values are adjusting over time.
Do bear in mind that while I have removed the size factor, I have not accounted for some other factors such as age. The first quarter of 2004 showed a sizable decrease in median home sales price --- this could be explained by a large number of older homes selling, or by some other factor that would affect the price per square foot of homes that sold.
To try to account for the size of the home, I decided to take a look at how the median price per square foot has changed over the past six years.
This graph has a few irregularities, but overall seems like it might be a reasonably trustworthy indication of how home values are adjusting over time.
Do bear in mind that while I have removed the size factor, I have not accounted for some other factors such as age. The first quarter of 2004 showed a sizable decrease in median home sales price --- this could be explained by a large number of older homes selling, or by some other factor that would affect the price per square foot of homes that sold.
