Most buyers believe if the average per-square-foot price for a month is $300, then they can take a 1,000 square-foot-home and come up with a value of $300,000. But that's not how it works.
For one thing, if four homes sell in May and 25 homes sell in June, the June average price-per-square foot will be much more accurate than May's. The May numbers will be skewered because fewer homes were sold. On top of that, smaller homes command higher per-square-foot costs than larger homes.
Throw into the mix that buyers might not know the difference between median prices and average prices, and it's even more confusing. . . . read more about Home Price Per Square Foot.
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At the time of writing, Elizabeth Weintraub, DRE # 00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California.