Sunday, October 12, 2014

Stats Can Say Anything

I'm always highly entertained with the way information is presented.  This time of year is especially entertaining with all of the political ads that are out there as we approach voting time.

When I watched this month's edition of This Month In Real Estate (seen below), I chuckled a bit because I just had the conversation about September being a rather slow month with a few friends this week.

In the video you'll see that the statistics presented show home prices to be down from the prior month.  Alarms should go off right?  Not exactly.  We are presented September (traditionally a slower month) versus August (traditionally a better month for sales).

From KWRI:

The video does show that prices are up from the same time in 2013, so there is a hint of good news included.  

I'm not saying that the drop in price from August to September is automatically skewed information or should even contain a red flag at all... What I want to point out is that there isn't any need to panic, no need for rumors of a crash.  I'm just showing that we need to process the information, not just jump to conclusions.  

The market, especially in Central Ohio, is very healthy right now.  Buying and selling is far more about personal needs than overall health of the market.  

Take care, 
Scott Morrison

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