Property Value Trends

 

 

We know that sometimes graphs can be shutterstock_136265849intimidating but this graph really is simple to understand.

The graph is simply a timeline that matches values and points in time and then links all the data together to form a trend line that either points up or down.  Hopefully the graph will always point up as this is the way equity is built and net worth is amassed.

The horizontal line across the bottom is simply a calendar moving through time.  It is broken down monthly.  As time goes by the new month is added and the oldest month is dropped.

The vertical line on the left hand side of the graph is property values associated with the current median sales prices in the survey area.

The graph moves from left to right as it moves from the past into the future.  So if property values stay flat, not going up or down the graph would simply be a horizontal line.  If property values are going up the line would point upward from left to right, and downward from left to right if property values are going down.

Los Angeles median sales prices

Number of sold homes in Los Angeles

The graph tracks the Median Sales Prices and the prices displayed each month can be effected by events that can distort the displayed value at times, such as if many more lower priced house sell in a month which would lower the average price indicated on the graph.

Since the graph is for Median Sales Prices it is really an average value that may or may not be comparative to your property value.  The value of your property can be a lot less or even a lot more than the prices on our graph.   But what the graph does show you are general sales trends in the real estate market that are indicative of the direction the market is moving.  If the graph is trending up most likely your property is going up in value and would be a good thing.