Saturday, April 26, 2008

On sales mix and tinfoil hats

When prices decrease a larger percentage of lower-priced homes sell. Low-priced may not mean the same thing as low-end in a environment of decreasing prices. I don't know whether to interpret this as useful information or a sophisticated way of implying that the sales mix is responsible for decreasing prices. Thats what the tinfoil hat is for. From Bob Truman's What's New:

Apr 23
There's a higher percentage of low-end homes selling this year. Here are the numbers compared to 2007:
Criteria: single family homes

Total Sales % Sold Under $425,000 % Sold Over $525,000

April 1-23, 2008 1059 51% 23%
April 1-30, 2007 2073 47% 24%

All other sales would be in the price range of $425,000 - $525,000.


Pierre said...

The entry level market...

BearClaw said...

When prices decrease (as they have in Calgary) the range of 0-425K represents better quality properties. So it is not accurate to imply that more low-end homes are selling. I think Bob is implying the sales mix is responsible for the price drop. That what the tinfoil hat tell me.