Republican Real Estate Bubble About to Burst

[Wiregrass Willie]

Economists Predict Impending Report Will Show Median Price Has Dropped Since Last Year

Aug. 26, 2007
The Median Price Of Single Family Homes May Fall (CBS)

"Well over half the country is now experiencing price declines and will experience further price declines through this time next year into 2009. That's unprecedented."

(CBS) The already rough real estate market may be about to get bumpier.

Economists predict a government report due out Thursday will show a national drop in the median price of single family homes since last year. If economists are right, it will be the first time that's ever happened.

"Cumulatively, prices should fall somewhere between five and 10 percent nationwide," said economist Mark Zandi.

The median price for a single-family home is currently $223,800. The median price is the number midway between the least expensive and most expensive houses sold in a given period.

http://www.cbsnews.com/stories/2007/08/26/eveningnews/main3205052.shtml

[mwb970]

1. I thought the median was the value of the middle item.

The median price is the number midway between the least expensive and most expensive houses sold in a given period.

That isn't the definition I learned.

[Wiregrass Willie]

2. That struck me as odd, also

It was the thing that most stuck in my mind when I heard the story. I had a different definition for "median". I'm now trying to ascertain what is the correct meaning of "median".

I thought it was the value of the house below which one half of the houses sold and above which one half sold. ie, half were more expensive and half were less expensive.

[Warren Stupidity]

3. Ask Dr. Math

The MEAN is the arithmetic average, the average you are probably used
to finding for a set of numbers - add up the numbers and divide by how
many there are: (80 + 90 + 90 + 100 + 85 + 90) / 6 = 89 1/6.

The MEDIAN is the number in the middle. In order to find the median,
you have to put the values in order from lowest to highest, then find
the number that is exactly in the middle:

80 85 90 90 90 100
^
since there is an even number of values, the MEDIAN is
between these two, or it is 90. Notice that there is
exactly the same number of values ABOVE the median as
BELOW it!

The MODE is the value that occurs most often. In this case, since
there are 3 90's, the mode is 90. A set of data can have more than one
mode.

http://mathforum.org/library/drmath/view/58326.html

[ProdigalJunkMail]

4. this ain't just a republican housing bubble...

it is going to hurt everyone to some degree trying to sell a home.

sP

[Wiregrass Willie]

5. I suppose you are right, but ..

I think it was the Republican goal to force interest rates down (for Big Business) that caused the climate which sucked a lot of people into financing a lot more than they could afford.