The National Association of Realtors (NAR) will release its latest Existing Home Sales Report tomorrow. The information it contains on home prices may cause some confusion and could even generate some troubling headlines. This all stems from the fact that NAR will report the median sales price, while other home price indices report repeat sales prices. The vast majority of the repeat sales indices show prices are starting to appreciate again. But the median price reported on Thursday may tell a different story.
Here’s why using the median home price as a gauge of what’s happening with home values isn’t ideal right now. According to the Center for Real Estate Studies at Wichita State University:
“The median sale price measures the ‘middle’ price of homes that sold, meaning that half of the homes sold for a higher price and half sold for less. While this is a good measure of the typical sale price, it is not very useful for measuring home price appreciation because it is affected by the ‘composition’ of homes that have sold."
"For example, if more lower-priced homes have sold recently, the median sale price would decline (because the “middle” home is now a lower-priced home), even if the value of each individual home is rising.”
People buy homes based on their monthly mortgage payment, not the price of the house. When mortgage rates go up, they have to buy a less expensive home to keep the monthly expense affordable. More ‘less-expensive’ houses are selling right now, and that’s causing the median price to decline. But that doesn’t mean any single house lost value.
Even NAR, an organization that reports on median prices, acknowledges there are limitations to what this type of data can show you. NAR explains:
“Changes in the composition of sales can distort median price data ”
For clarification, here’s a simple explanation of median value:
You have three coins in your pocket. Line them up in ascending value (lowest to highest).
If you have one nickel and two dimes, the median value of the coins (the middle one) in your pocket is ten cents.
If you have two nickels and one dime, the median value of the coins in your pocket is now five cents.
In both cases, a nickel is still worth five cents and a dime is still worth ten cents. The value of each coin didn’t change.
The same thing applies to today’s real estate market.
The bottom line is actual home values are going up in most markets. The median value reported tomorrow might tell a different story.
"With overall consumer price inflation calming and rents expected to decelerate from robust apartment construction, the Federal Reserve's monetary policy will surely shift from tightening to neutral to possibly loosening over the next 12 months."
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Summer is almost here! To make your home feel like a summer holiday destination, some easy summer decoration ideas can help you decorate your home
1. Change the Color Palette
While you might be tempted to use bold colors and patterns, it's better not to overdo it when decorating your summer house. If it is a place where you want to relax and unwind, it is better to opt for neutral colors like white, cream, sand, and light browns that will make your rooms feel fresh and airy
2. Focus on Lighting. Turning on lamps when it's dark outside can help you create a cozy atmosphere, but when it's bright outside, open those curtains and let the sunshine in! Natural light helps brighten space and gives rooms a bigger feel It also helps you be more ecoconscious by saving energy
3. Add Green Plants and Flowers. Summer decoration ideas are all about bringing the outdoors inside so add some green indoor plants to your home You can put them in small pots or vases and set them on end tables and other areas of your living room Try placing large houseplants in stylish pots near your windows or on side tables so they're visible from every angle. Adding flowers is another great way to add colorChoose blooms in vibrant shades of blue, violet, orange and yellow.
4. Add Texture and Rearrange with House Decor Items. Shaking things up by moving around furniture or adding new pieces to your room or balcony can also help bring that fresh new look to your home Add some new house decoration items and accessories You can also use existing ones and play with their location to give a different touch to your home decoration If you want to get a unique result, look for unusual objects such as decorative boxes made of natural fibers like rattan or wicker or vases made of blown glass.
5. Use Some Bright Upholstery. A simple way to lighten up your home is to replace your heavy winter curtains or even pillows with lighter sheers that let sunlight in more easily. Many people remove their winter blankets and change their couch pillows with bright colors such as yellow or pink. Start with an upholstered piece like an armchair or daybed, then add in throw pillows, wall art and accessories that feature similar hues but have different textures It gives a space depth while still maintaining comfort
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