Before you get excited over the latest national, regional, or local home prices as reported in the news media, know if they are comparing apples to apples. The news reports use either the average or the median (middle) home price for a given time period. And the numbers can be misleading.
In some markets, the investors moved in immediately after the crash, buying every low priced home they could find to turn them into rental properties. Before long, buyers who wanted a home priced at the lower end of their market were out of luck.
At the same time, high-end buyers were starting to become active once again. And guess what that did to the average and the median in months to come? Naturally, it looked as if prices had risen.
Of course, in most markets prices are rising now. We are seeing multiple offers on most Silverlake area homes. The low interest rates coupled with the lack of inventory has...