Why Median Home Price is More Accurate Than The Average Home Price

Check out this example of seven properties and how different the numbers can be portrayed when looking at the median and average home prices:

$100,000 (foreclosure) $150,000 (short sale) $175,000 (traditional sale) $200,000 (traditional sale) $225,000 (traditional sale) $250,000 (traditional sale) $6,000,000 (estate)

Average (Mean): $1,014,286 Median: $200,000

The average can be skewed by outliers in a specific market. The median will give a better representation of what most of the real estate in a market will be sold at. Each property is different and you should always get comps on a property when you're looking to buy or sell any real estate.

“What Is the Difference between Median Sales Price & Average Sales Price?” ShowingTime, www.showingtime.com/blog/what-is-the-difference-between-median-sales-price-average-sales-price/#:~:text=Many%20times%2C%20one%20would%20think,median%20is%20the%20better%20option. Accessed 8 May 2023.