The question you pose makes me smile...not because its funny, but because real estate has become such a weird place. Our market is so funny isn't it?
Its the same thing I have tried to explain to some folks...Even if a home has a particular "value," the "fair market sales price" will rise and fall depending on trendiness, competition and inventory vs. availability. Say my home is worth 550K and I know this...because of the volume of listed homes, many of which being sold as "distressed," if I had to sell now it would have to be listed at a lower price...the value is more factual and the sales price right now seems to be more in the abstract...falling a little day by day. list price and sales price are so different for a few reasons all pretty much based on the scenario above. Everyone is looking for a good deal if they don't get the good deal the house won't sell..so if there are 2 homes 1 50k less, the lower one will sell and likely at an even lower price than that (probably closing cost too), driving down the median sales price. Meanwhile the home at the higher price stays listed and provides other agents with a basis to over price more homes... =)
If you're selling your home its the "solds" that matter.
Hope this helps.
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