Quote:
Originally Posted by Kavvy
Hey Realtor1 and all,
I heard a rumor that stated the CREB average and meridian price included in CREB stats were based off the last listed price of the house, and not the actual price sold.
It is my understanding that this came from Garth Turner's blog, but I am far too lazy to check, so maybe it didn't.
I emailed CREB and ask if this rumor was true and if it was, why did they choose this methodology - no reply as of yet so I am asking here.
If true,
In seller markets this would mean that the actual average price is lower then what is included in CREB stats (assuming more then half of the houses sell even slightly below list despite being a seller market).
In buyer markets, the average price would be greatly overstated as a good deal more places would sell below their last list price (i.e the spread between the last list and actual would greatly drop in a buyers market).
Can anyone confirm/debunk this? I checked CREB.com and didn't see anything, am I blind?
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I think you mixed up a few sentences.
In a sellers market the actual price used by CREB would be
lower than actual, since in a sellers market people may pay MORE than list and as such using list vs. actual sale price would indicate the market was lower than what is actually being sold.
In a buyers market you are correct, with housing perhaps being traded below ask, using the ask would reflect and incorrect average.
That said, I have no idea as to whether CREB using what you've described.