As of October 25, 2023, the median price of a single-family home in Guam, often considered a key indicator for typical housing costs, was $415,000. While "average" (mean) and "median" are distinct statistical measures, the median price provides a more representative figure for the middle of the market, especially in real estate where a few very high or very low prices can skew a simple average.
Understanding Guam's Housing Market
The figure of $415,000 for a single-family home represents the median price, meaning half of the homes sold for more than this amount and half sold for less. This data was reported by Cornerstone Valuation Guam Inc., a key player in the island's real estate valuation.
This valuation reflects a recent shift in the market. The median price has seen a decrease of approximately $30,000 compared to the same period last year. This dip follows several years of significant price increases, where housing costs had been climbing steeply. The current slight fall suggests a market adjustment, potentially as buyers face increasing affordability challenges.
Median vs. Average: Why the Distinction Matters
In real estate, using the median price often gives a clearer picture of typical home values than the average (mean) price. Here's why:
- Median: This is the middle value in a dataset when all prices are listed from lowest to highest. It is less affected by extremely high-priced luxury homes or very low-priced distressed properties, offering a more realistic view of what most buyers might expect to pay.
- Average (Mean): This is calculated by summing all home prices and dividing by the total number of homes. If there are a few exceptionally expensive homes sold, the average price can be pulled upwards, creating a misleading impression of the overall market.
Therefore, when discussing "average price" in the context of housing, the median is frequently used as it better reflects the experience of the typical homebuyer.
Recent Trends in Guam's Housing Prices
Guam's real estate market has experienced notable fluctuations over recent years. After a period of steeply climbing housing prices, the market has shown signs of leveling off. The decrease of around $30,000 in the median home price in 2023 indicates a shift from the previous upward trend. This adjustment can be influenced by various factors, including:
- Affordability: Rising prices can price out potential buyers, leading to a slowdown in demand.
- Interest Rates: Changes in mortgage interest rates significantly impact purchasing power.
- Supply and Demand: The availability of homes versus the number of interested buyers.
Key Market Snapshot (October 2023)
To provide a clear overview, here's a summary of the most recent data:
| Metric | Value | Date | Trend (vs. last year) | Source |
|---|---|---|---|---|
| Median Home Price | $415,000 | Oct 25, 2023 | Down ~$30,000 | Cornerstone Valuation Guam Inc. (reported by guampdn.com) |
| Type of Home Represented | Single-family |
This data provides valuable insight into the current state of the single-family home market on Guam.
