“There are three kinds of lies: lies, damned lies and statistics.”
Orange County Real Estate statistics and general real estate statistics litter the internet and print publications offering the public some insight into what is going on in the market. The emphasis here is SOME insight. Depending on what information is included & excluded, how the statistics are calculated and most importantly how far removed the analyzer is from the market all affect what assumptions are reached and what numbers are reported.
The first thing to look for is what is actually being calculated in the Orange County real estate statistics you are looking at. All good analysis begins with identifying what you are analyzing, if you see a chart or graph that does not disclose what is being examined then the information will be of limited actual use for you because you can’t decide how relevant that information is to your particular situation. The reason being is the number of options for consideration which include:
- Single family homes
- All detached homes (including detached condos)
- All residential homes including single family townhomes and condos
- All residential real estate including land and mobile homes
- All real estate including all residential and all commercial
How the data is calculated is the next factor to consider. Is it an average where the extremes on both ends carry more weight or is it a median which protects you from the extremes contaminating your results. Depending on what your looking out there are times when the average provides a more realistic number, such as days to sell and other times when median provides a more realistic number such as price.
Lastly who is doing the analysis carries a great deal of weight on the usefulness of the information and most important the ultimate conclusions reached through the analysis. The more removed the person is from the trenches of Orange County real estate generally the less valuable their analysis is bound to be simply because they are lacking information you can only acquire working hands on in the market. Statistics are nothing more than a measure of the immediate past and without the working knowledge of what is actually occurring in the market right now the analysis risks missing key aspects of consideration.
Remember always take Orange County real estate statistics with a grain of salt and always keep in mind that real estate is ultimately a hyper local industry so realize that what is a trend overall may not be a trend for your city or neighborhood. If you have any questions about Orange County real estate or real estate statistics feel free to contact me, I am here to help.
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