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The Truth about Average Sales Price

graph showing the average sale price trending upI looked at a new property for sale in Frisco a couple of weeks ago. It’s a cute place and was very familiar to me. I looked up the property history and realized it was familiar because it was on the market last year. It sold for $385,000 and due to the owner’s situation changing it is back on the market for $429,000. Nothing had changed with the property. It wasn’t as if it was a fixer upper last year and was now a gorgeous home. I asked the listing agent why it was priced so high. His response was that the average sales price in Frisco was up 10% this year over last year so his price was just keeping up with appreciation.

10% Increase in average sale price

I checked his numbers and sure enough the average sales price was up 10% over 2013’s average. But does that statistic really mean that every property in Frisco is valued 10% higher now than it was last year? To answer this question we have to look at the data that makes up Frisco’s average sales price. Every sale of every residential property in Frisco is included in the average sales price calculation; from studio condos to million dollar homes and everything in between. The mix of sales has a big impact when calculating the average. If there have been a lot of lower priced properties selling and no high end sales, it will drag the average down. If there have been a lot of high end sales but nothing in the lower price ranges, the average sales price will be higher. The mix of sales has nothing to do with price appreciation in an area. More higher end sales may indicate that the market is getting stronger because more people are spending more money. It could also mean there were fewer lower priced properties for sale. More information is needed to draw any accurate conclusions.

  • In 2013, Frisco’s average residential sales price was at $472,654. 68% of the sales were under $500,000 and 2.5% were over $1 million.
  • Through the end of May this year the average has jumped up 13% to $536,197. 2.5% were still over $1 million but only 53% of the sales were under $500,000.

Just from looking at the mix of sales, I would expect the average sales price to be lower in 2013 when a larger percentage of sales were in lower price ranges. If the mix of sales were relatively equal, I could see a possible conclusion that there must be appreciation happening. But again, more information would be needed.

The use of statistics

Realize, just about any position can be justified by a statistic of some sort and one statistic never tells the entire story. When you hear random statistics, the question you need to answer is why that statistic is being put out there. In this case, the agent was telling me about the average sales price because he wanted to sell me & my client on this property. Unless a real estate agent is your Buyer’s Agent or Seller’s Agent, they are just a salesperson looking to make a sale. Don’t get sold. Get the facts. Hire an Agent that represents you.

Posted in: Market Statistics Tagged: Average Sale Price

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Mountain Living Real Estate, a.k.a. The Mountain Living Team, is a family owned, second generation, real estate company that has been helping buyers and sellers in Summit County since the early 90’s.  Mountain Living Real Estate is committed to going above and beyond to ensure their clients have the most amazing real estate experience possible.  Jason & Meredith take a personal approach to educate their clients, empowering them to make high quality decisions no matter the situation.  They take exceptional care throughout the sales process and beyond; striving to make each client’s path in Summit County one filled with fun, excitement & great memories.

Work with Mountain Living Real Estate and you’ll understand why so many people say, “We Love Mountain Living!”

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William from TX Mountain Living Real Estate November 25, 2020

Honest and realistic about pricing and negotiating. On the clients side for negotiations. Willing to go extra mile for anything we needed since we were out of state.

Kristin from VA Mountain Living Real Estate October 6, 2020

Thank you Jason and Meridith for all you did . We were very impressed from the start to the finish . Jason was very timely with his responses to any questions or concerns we had . His very calm and professional demeanor was most reassuring. The photos that Meridith took were professional grade . All Continue Reading

John from Idaho Springs, CO Mountain Living Real Estate October 2, 2020

Jason and Meredith exemplify what real estate agents should be.  We purchased two homes and sold one with them.  The attention to detail was outstanding.  It is rare in today’s world to find such a high level of customer service.   Jason and Meredith handle everything and go way above and beyond what other agents would do.  The online tools, calendar Continue Reading

Wendy from Pine, CO Mountain Living Real Estate September 14, 2020

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Thank you for going above and beyond to sell and help me close! You have been a great resource for us. We so appreciate it!

Sheila from KS Mountain Living Real Estate September 10, 2020

Most impressed with timeliness and response – working with us late in the evening. It was a pleasure. Appreciate the opportunity to work with you.

Kevin from Highlands Ranch Mountain Living Real Estate September 4, 2020

You did a wonderful job. You went up to the condo several times. Not only did you take pictures, but you set up the dining table, etc. for better showing. You came in for inspection follow up, etc. All much appreciated!! All the extra special touches and great communication from listing to closing meant a Continue Reading

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You went above and beyond our expectations to check out the Wetterhorn unit! You know what we like and saw the opportunity for us to purchase a unit we will enjoy!

Linda from Texas Mountain Living Real Estate June 30, 2020

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Jason & Meredith Adams
Mountain Living Real Estate

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