Data from the country tax records indicate that the median home is a three bedroom, two bath 1820 square foot home on a 6,600 square foot lot. If the median size of sold homes during a given period were greater than that it would account for the median price also being more.
Quickly surveying the sales from September to October (closed homes) we indeed see that more large home sold in Octoberâ€”6 0% of the homes sold were over 1820 square feet as opposed to only 46% in September.
Since there was a shift in the median size home sold (up 14%), it stands to reason that the median home price would reflect that changeâ€”as it did. Yet applying the median price per square foot for the homes which sold, to the true median size home in Belmont (1820 Sq. Ft.), we return the following theoretical media priceâ€”still an increase over the prior month.
Larger homes sell for less per square foot. Much of this has to do with not accounting for land in the formula, but needless to say with more large homes selling the price per square foot should dropâ€”it didn’t.
The median size home sold in September (1700 Sq. Ft) was more representative of the median sized Belmont home while in October the median size home (2,100) sold was 400 square feet larger. Using the established median price in September of $529.00 per square foot, that accounts for $211,765 of the higher median value in October or better put, adding that to Septembers’ median raises it to $1,191,765 and yield no median price growth.
Applying the square footage of the median size Belmont home to the median price per square foot would yield a more accurate depiction of what the true cost of a median price home in Belmont is today–$900,000. This data is a more true representation of the market as it includes only median size homes and what they have sold for in the preceding 12 month period.