Everyone likes to have their work validated, even indirectly. A new website for the investment industry uses my market reporting methodology-- the change in Sold Average Square Foot Price-- as their means to compare price appreciation in local housing markets. Charlotte ranks 2nd in growth nationally according to Radar Logic,11.3%, growth in the Sold Average Cost per square foot. (cps)Radar Logic is a tech company serving the investment banking industry.
For some time I've had issues with the Carolina MLS's regular reporting and the Charlotte Observer's regular coverage of the monthly median price index. It offers little in statistical meaning because it doesn't adjust for changes in average square foot of homes sold, so if one month people buy homes that average 50 sf larger than the year before, there is no meaningful comparison of price. That's why our market reports vary from theirs; our numbers here and for our clients are always based on the average cost per square foot of the sold property. SOLD COST PER SQUARE FOOT! And it isn't hard to figure, it's a mathematical process called division.
Here is the Radar Logic view, "The price per square foot metric provides a powerful tool to analyze housing markets because it significantly reduces the influence of property sizes on overall housing prices that can skew results."
Couldn't say it any better.
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Great Work! It is good to see someone analyzing the statistics that are thrown out about the market-ones that can be misleading at best. I agree with you in using the "cost per square foot" percent change when determining appreciation. As for Charlotte, it's a great city. My wife and I just moved here and we love it. Thanks for all the useful data on your blog, and the links to the housing reports..
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