In reporting a number of key real estate market statistics, there two statistical measures – MEDIAN and AVERAGE – that can be confusing to understand sometimes. Let’s take a minute to explain the difference.

AVERAGE is the term that is used more frequently in newspapers and on TV, but MEDIAN PRICE are usually a more accurate way to look at home prices in a city or neighborhood.

For example, let’s say that there are 10 homes for sale in a city. The prices of the homes are:

$250,000
$275,000
$285,000
$300,000
$300,000
$315,000
$500,000
$550,000
$600,000
$1,200,000

To calculate the AVERAGE PRICE, we would add up the prices of these 10 homes and divide by 10:

($250,000 + $275,000 + $285,000 + $300,000 + $315,000 + $300,000 + $500,000 + $550,000 + $600,000 + $1,200,000) / 10 = $457,000

We’ve calculated that the AVERAGE PRICE in this city is $457,000.

So how is that different from the MEDIAN PRICE?

The MEDIAN PRICE is “the number in the middle.” To find the MEDIAN PRICE, you simply to put the values in order from lowest to highest, and then find the number that is exactly in the middle. Using our same 10 properties for sale:

$250,000
$275,000
$285,000
$300,000
$300,000
$315,000
$500,000
$550,000
$600,000
$1,200,000

We can divide the 10 properties into two equal groups:

$250,000
$275,000
$285,000
$300,000
$300,000

$315,000
$500,000
$550,000
$600,000
$1,200,000

So the MEDIAN PRICE is somewhere between $300,000 and $315,000.

To calculate the MEDIAN PRICE, you just take the two values in the middle and divide by 2:

MEDIAN PRICE = ($300,000 + $315,000) / 2 = $307,000

So here we’ve calculated that the MEDIAN HOME PRICE in this city is $307,000. As you can see, this is very different from the Average Home Price of $457,000.

This is an important distinction to make because the AVERAGE PRICE in this city is greatly influenced by the one expensive home at the top of the market selling for $1,200,000. But, the MEDIAN PRICE is just an even count of how many homes are above or below the midpoint – a more accurate representation of prices in a neighborhood.

You can use the same analysis for other key statistics such as DAYS ON MARKET. Suppose that you have a couple of properties that have been on the market for an extended time. If you use AVERAGE DAYS ON MARKET, the number will be much higher than if you were to calculate the MEDIAN DAYS ON MARKET.

Here’s a specific example:

What if you’re working with a buyer that can afford up to $325,000 for a home? If you use the AVERAGE PRICE of $457,000 for the neighborhood, it appears that that area might be too expensive for the buyer. But, if you use the MEDIAN PRICE of $307,000, then this neighborhood will be right in the buyer’s zone.

Contact me today for more information!  Rod Potter/ Email: rpotter@carolina.rr.com / Phone: (704)840-4137

research provided by Altos Research

In reporting a number of key real estate market statistics, there two statistical measures – MEDIAN and AVERAGE – that can be confusing to understand sometimes. Let’s take a minute to explain the difference.

AVERAGE is the term that is used more frequently in newspapers and on TV, but MEDIAN PRICE are usually a more accurate way to look at home prices in a city or neighborhood.

For example, let’s say that there are 10 homes for sale in a city. The prices of the homes are:

$250,000
$275,000
$285,000
$300,000
$300,000
$315,000
$500,000
$550,000
$600,000
$1,200,000

To calculate the AVERAGE PRICE, we would add up the prices of these 10 homes and divide by 10:

($250,000 + $275,000 + $285,000 + $300,000 + $315,000 + $300,000 + $500,000 + $550,000 + $600,000 + $1,200,000) / 10 = $457,000

We’ve calculated that the AVERAGE PRICE in this city is $457,000.

So how is that different from the MEDIAN PRICE?

The MEDIAN PRICE is “the number in the middle.” To find the MEDIAN PRICE, you simply to put the values in order from lowest to highest, and then find the number that is exactly in the middle. Using our same 10 properties for sale:

$250,000
$275,000
$285,000
$300,000
$300,000
$315,000
$500,000
$550,000
$600,000
$1,200,000

We can divide the 10 properties into two equal groups:

$250,000
$275,000
$285,000
$300,000
$300,000

$315,000
$500,000
$550,000
$600,000
$1,200,000

So the MEDIAN PRICE is somewhere between $300,000 and $315,000.

To calculate the MEDIAN PRICE, you just take the two values in the middle and divide by 2:

MEDIAN PRICE = ($300,000 + $315,000) / 2 = $307,000

So here we’ve calculated that the MEDIAN HOME PRICE in this city is $307,000. As you can see, this is very different from the Average Home Price of $457,000.

This is an important distinction to make because the AVERAGE PRICE in this city is greatly influenced by the one expensive home at the top of the market selling for $1,200,000. But, the MEDIAN PRICE is just an even count of how many homes are above or below the midpoint – a more accurate representation of prices in a neighborhood.

You can use the same analysis for other key statistics such as DAYS ON MARKET. Suppose that you have a couple of properties that have been on the market for an extended time. If you use AVERAGE DAYS ON MARKET, the number will be much higher than if you were to calculate the MEDIAN DAYS ON MARKET.

Here’s a specific example:

What if you’re working with a buyer that can afford up to $325,000 for a home? If you use the AVERAGE PRICE of $457,000 for the neighborhood, it appears that that area might be too expensive for the buyer. But, if you use the MEDIAN PRICE of $307,000, then this neighborhood will be right in the buyer’s zone.

Contact me today for more information!  Rod Potter/ Email: rpotter@carolina.rr.com / Phone: (704)840-4137

research provided by Altos Research

In reporting a number of key real estate market statistics, there two statistical measures – MEDIAN and AVERAGE – that can be confusing to understand sometimes. Let’s take a minute to explain the difference.

AVERAGE is the term that is used more frequently in newspapers and on TV, but MEDIAN PRICE are usually a more accurate way to look at home prices in a city or neighborhood.

For example, let’s say that there are 10 homes for sale in a city. The prices of the homes are:

$250,000
$275,000
$285,000
$300,000
$300,000
$315,000
$500,000
$550,000
$600,000
$1,200,000

To calculate the AVERAGE PRICE, we would add up the prices of these 10 homes and divide by 10:

($250,000 + $275,000 + $285,000 + $300,000 + $315,000 + $300,000 + $500,000 + $550,000 + $600,000 + $1,200,000) / 10 = $457,000

We’ve calculated that the AVERAGE PRICE in this city is $457,000.

So how is that different from the MEDIAN PRICE?

The MEDIAN PRICE is “the number in the middle.” To find the MEDIAN PRICE, you simply to put the values in order from lowest to highest, and then find the number that is exactly in the middle. Using our same 10 properties for sale:

$250,000
$275,000
$285,000
$300,000
$300,000
$315,000
$500,000
$550,000
$600,000
$1,200,000

We can divide the 10 properties into two equal groups:

$250,000
$275,000
$285,000
$300,000
$300,000

$315,000
$500,000
$550,000
$600,000
$1,200,000

So the MEDIAN PRICE is somewhere between $300,000 and $315,000.

To calculate the MEDIAN PRICE, you just take the two values in the middle and divide by 2:

MEDIAN PRICE = ($300,000 + $315,000) / 2 = $307,000

So here we’ve calculated that the MEDIAN HOME PRICE in this city is $307,000. As you can see, this is very different from the Average Home Price of $457,000.

This is an important distinction to make because the AVERAGE PRICE in this city is greatly influenced by the one expensive home at the top of the market selling for $1,200,000. But, the MEDIAN PRICE is just an even count of how many homes are above or below the midpoint – a more accurate representation of prices in a neighborhood.

You can use the same analysis for other key statistics such as DAYS ON MARKET. Suppose that you have a couple of properties that have been on the market for an extended time. If you use AVERAGE DAYS ON MARKET, the number will be much higher than if you were to calculate the MEDIAN DAYS ON MARKET.

Here’s a specific example:

What if you’re working with a buyer that can afford up to $325,000 for a home? If you use the AVERAGE PRICE of $457,000 for the neighborhood, it appears that that area might be too expensive for the buyer. But, if you use the MEDIAN PRICE of $307,000, then this neighborhood will be right in the buyer’s zone.

Contact me today for more information!  Rod Potter/ Email: rpotter@carolina.rr.com / Phone: (704)840-4137

research provided by Altos Research

In reporting a number of key real estate market statistics, there two statistical measures – MEDIAN and AVERAGE – that can be confusing to understand sometimes. Let’s take a minute to explain the difference.

AVERAGE is the term that is used more frequently in newspapers and on TV, but MEDIAN PRICE are usually a more accurate way to look at home prices in a city or neighborhood.

For example, let’s say that there are 10 homes for sale in a city. The prices of the homes are:

$250,000
$275,000
$285,000
$300,000
$300,000
$315,000
$500,000
$550,000
$600,000
$1,200,000

To calculate the AVERAGE PRICE, we would add up the prices of these 10 homes and divide by 10:

($250,000 + $275,000 + $285,000 + $300,000 + $315,000 + $300,000 + $500,000 + $550,000 + $600,000 + $1,200,000) / 10 = $457,000

We’ve calculated that the AVERAGE PRICE in this city is $457,000.

So how is that different from the MEDIAN PRICE?

The MEDIAN PRICE is “the number in the middle.” To find the MEDIAN PRICE, you simply to put the values in order from lowest to highest, and then find the number that is exactly in the middle. Using our same 10 properties for sale:

$250,000
$275,000
$285,000
$300,000
$300,000
$315,000
$500,000
$550,000
$600,000
$1,200,000

We can divide the 10 properties into two equal groups:

$250,000
$275,000
$285,000
$300,000
$300,000

$315,000
$500,000
$550,000
$600,000
$1,200,000

So the MEDIAN PRICE is somewhere between $300,000 and $315,000.

To calculate the MEDIAN PRICE, you just take the two values in the middle and divide by 2:

MEDIAN PRICE = ($300,000 + $315,000) / 2 = $307,000

So here we’ve calculated that the MEDIAN HOME PRICE in this city is $307,000. As you can see, this is very different from the Average Home Price of $457,000.

This is an important distinction to make because the AVERAGE PRICE in this city is greatly influenced by the one expensive home at the top of the market selling for $1,200,000. But, the MEDIAN PRICE is just an even count of how many homes are above or below the midpoint – a more accurate representation of prices in a neighborhood.

You can use the same analysis for other key statistics such as DAYS ON MARKET. Suppose that you have a couple of properties that have been on the market for an extended time. If you use AVERAGE DAYS ON MARKET, the number will be much higher than if you were to calculate the MEDIAN DAYS ON MARKET.

Here’s a specific example:

What if you’re working with a buyer that can afford up to $325,000 for a home? If you use the AVERAGE PRICE of $457,000 for the neighborhood, it appears that that area might be too expensive for the buyer. But, if you use the MEDIAN PRICE of $307,000, then this neighborhood will be right in the buyer’s zone.

Contact me today for more information!  Rod Potter/ Email: rpotter@carolina.rr.com / Phone: (704)840-4137

research provided by Altos Research

3; text-shadow:auto;mso-ansi-language:EN-US;mso-fareast-language:EN-US;mso-bidi-language: AR-SA’>provided by Altos Research

In reporting a number of key real estate market statistics, there two statistical measures – MEDIAN and AVERAGE – that can be confusing to understand sometimes. Let’s take a minute to explain the difference.

AVERAGE is the term that is used more frequently in newspapers and on TV, but MEDIAN PRICE are usually a more accurate way to look at home prices in a city or neighborhood.

For example, let’s say that there are 10 homes for sale in a city. The prices of the homes are:

$250,000
$275,000
$285,000
$300,000
$300,000
$315,000
$500,000
$550,000
$600,000
$1,200,000

To calculate the AVERAGE PRICE, we would add up the prices of these 10 homes and divide by 10:

($250,000 + $275,000 + $285,000 + $300,000 + $315,000 + $300,000 + $500,000 + $550,000 + $600,000 + $1,200,000) / 10 = $457,000

We’ve calculated that the AVERAGE PRICE in this city is $457,000.

So how is that different from the MEDIAN PRICE?

The MEDIAN PRICE is “the number in the middle.” To find the MEDIAN PRICE, you simply to put the values in order from lowest to highest, and then find the number that is exactly in the middle. Using our same 10 properties for sale:

$250,000
$275,000
$285,000
$300,000
$300,000
$315,000
$500,000
$550,000
$600,000
$1,200,000

We can divide the 10 properties into two equal groups:

$250,000
$275,000
$285,000
$300,000
$300,000

$315,000
$500,000
$550,000
$600,000
$1,200,000

So the MEDIAN PRICE is somewhere between $300,000 and $315,000.

To calculate the MEDIAN PRICE, you just take the two values in the middle and divide by 2:

MEDIAN PRICE = ($300,000 + $315,000) / 2 = $307,000

So here we’ve calculated that the MEDIAN HOME PRICE in this city is $307,000. As you can see, this is very different from the Average Home Price of $457,000.

This is an important distinction to make because the AVERAGE PRICE in this city is greatly influenced by the one expensive home at the top of the market selling for $1,200,000. But, the MEDIAN PRICE is just an even count of how many homes are above or below the midpoint – a more accurate representation of prices in a neighborhood.

You can use the same analysis for other key statistics such as DAYS ON MARKET. Suppose that you have a couple of properties that have been on the market for an extended time. If you use AVERAGE DAYS ON MARKET, the number will be much higher than if you were to calculate the MEDIAN DAYS ON MARKET.

Here’s a specific example:

What if you’re working with a buyer that can afford up to $325,000 for a home? If you use the AVERAGE PRICE of $457,000 for the neighborhood, it appears that that area might be too expensive for the buyer. But, if you use the MEDIAN PRICE of $307,000, then this neighborhood will be right in the buyer’s zone.

Contact me today for more information!  Rod Potter/ Email: rpotter@carolina.rr.com / Phone: (704)840-4137

research provided by Altos Research

In reporting a number of key real estate market statistics, there two statistical measures – MEDIAN and AVERAGE – that can be confusing to understand sometimes. Let’s take a minute to explain the difference.

AVERAGE is the term that is used more frequently in newspapers and on TV, but MEDIAN PRICE are usually a more accurate way to look at home prices in a city or neighborhood.

For example, let’s say that there are 10 homes for sale in a city. The prices of the homes are:

$250,000
$275,000
$285,000
$300,000
$300,000
$315,000
$500,000
$550,000
$600,000
$1,200,000

To calculate the AVERAGE PRICE, we would add up the prices of these 10 homes and divide by 10:

($250,000 + $275,000 + $285,000 + $300,000 + $315,000 + $300,000 + $500,000 + $550,000 + $600,000 + $1,200,000) / 10 = $457,000

We’ve calculated that the AVERAGE PRICE in this city is $457,000.

So how is that different from the MEDIAN PRICE?

The MEDIAN PRICE is “the number in the middle.” To find the MEDIAN PRICE, you simply to put the values in order from lowest to highest, and then find the number that is exactly in the middle. Using our same 10 properties for sale:

$250,000
$275,000
$285,000
$300,000
$300,000
$315,000
$500,000
$550,000
$600,000
$1,200,000

We can divide the 10 properties into two equal groups:

$250,000
$275,000
$285,000
$300,000
$300,000

$315,000
$500,000
$550,000
$600,000
$1,200,000

So the MEDIAN PRICE is somewhere between $300,000 and $315,000.

To calculate the MEDIAN PRICE, you just take the two values in the middle and divide by 2:

MEDIAN PRICE = ($300,000 + $315,000) / 2 = $307,000

So here we’ve calculated that the MEDIAN HOME PRICE in this city is $307,000. As you can see, this is very different from the Average Home Price of $457,000.

This is an important distinction to make because the AVERAGE PRICE in this city is greatly influenced by the one expensive home at the top of the market selling for $1,200,000. But, the MEDIAN PRICE is just an even count of how many homes are above or below the midpoint – a more accurate representation of prices in a neighborhood.

You can use the same analysis for other key statistics such as DAYS ON MARKET. Suppose that you have a couple of properties that have been on the market for an extended time. If you use AVERAGE DAYS ON MARKET, the number will be much higher than if you were to calculate the MEDIAN DAYS ON MARKET.

Here’s a specific example:

What if you’re working with a buyer that can afford up to $325,000 for a home? If you use the AVERAGE PRICE of $457,000 for the neighborhood, it appears that that area might be too expensive for the buyer. But, if you use the MEDIAN PRICE of $307,000, then this neighborhood will be right in the buyer’s zone

In reporting a number of key real estate market statistics, there two statistical measures – MEDIAN and AVERAGE – that can be confusing to understand sometimes. Let’s take a minute to explain the difference.

AVERAGE is the term that is used more frequently in newspapers and on TV, but MEDIAN PRICE are usually a more accurate way to look at home prices in a city or neighborhood.

For example, let’s say that there are 10 homes for sale in a city. The prices of the homes are:

$250,000
$275,000
$285,000
$300,000
$300,000
$315,000
$500,000
$550,000
$600,000
$1,200,000

To calculate the AVERAGE PRICE, we would add up the prices of these 10 homes and divide by 10:

($250,000 + $275,000 + $285,000 + $300,000 + $315,000 + $300,000 + $500,000 + $550,000 + $600,000 + $1,200,000) / 10 = $457,000

We’ve calculated that the AVERAGE PRICE in this city is $457,000.

So how is that different from the MEDIAN PRICE?

The MEDIAN PRICE is “the number in the middle.” To find the MEDIAN PRICE, you simply to put the values in order from lowest to highest, and then find the number that is exactly in the middle. Using our same 10 properties for sale:

$250,000
$275,000
$285,000
$300,000
$300,000
$315,000
$500,000
$550,000
$600,000
$1,200,000

We can divide the 10 properties into two equal groups:

$250,000
$275,000
$285,000
$300,000
$300,000

$315,000
$500,000
$550,000
$600,000
$1,200,000

So the MEDIAN PRICE is somewhere between $300,000 and $315,000.

To calculate the MEDIAN PRICE, you just take the two values in the middle and divide by 2:

MEDIAN PRICE = ($300,000 + $315,000) / 2 = $307,000

So here we’ve calculated that the MEDIAN HOME PRICE in this city is $307,000. As you can see, this is very different from the Average Home Price of $457,000.

This is an important distinction to make because the AVERAGE PRICE in this city is greatly influenced by the one expensive home at the top of the market selling for $1,200,000. But, the MEDIAN PRICE is just an even count of how many homes are above or below the midpoint – a more accurate representation of prices in a neighborhood.

You can use the same analysis for other key statistics such as DAYS ON MARKET. Suppose that you have a couple of properties that have been on the market for an extended time. If you use AVERAGE DAYS ON MARKET, the number will be much higher than if you were to calculate the MEDIAN DAYS ON MARKET.

Here’s a specific example:

What if you’re working with a buyer that can afford up to $325,000 for a home? If you use the AVERAGE PRICE of $457,000 for the neighborhood, it appears that that area might be too expensive for the buyer. But, if you use the MEDIAN PRICE of $307,000, then this neighborhood will be right in the buyer’s zone

In reporting a number of key real estate market statistics, there two statistical measures – MEDIAN and AVERAGE – that can be confusing to understand sometimes. Let’s take a minute to explain the difference.

AVERAGE is the term that is used more frequently in newspapers and on TV, but MEDIAN PRICE are usually a more accurate way to look at home prices in a city or neighborhood.

For example, let’s say that there are 10 homes for sale in a city. The prices of the homes are:

$250,000
$275,000
$285,000
$300,000
$300,000
$315,000
$500,000
$550,000
$600,000
$1,200,000

To calculate the AVERAGE PRICE, we would add up the prices of these 10 homes and divide by 10:

($250,000 + $275,000 + $285,000 + $300,000 + $315,000 + $300,000 + $500,000 + $550,000 + $600,000 + $1,200,000) / 10 = $457,000

We’ve calculated that the AVERAGE PRICE in this city is $457,000.

So how is that different from the MEDIAN PRICE?

The MEDIAN PRICE is “the number in the middle.” To find the MEDIAN PRICE, you simply to put the values in order from lowest to highest, and then find the number that is exactly in the middle. Using our same 10 properties for sale:

$250,000
$275,000
$285,000
$300,000
$300,000
$315,000
$500,000
$550,000
$600,000
$1,200,000

We can divide the 10 properties into two equal groups:

$250,000
$275,000
$285,000
$300,000
$300,000

$315,000
$500,000
$550,000
$600,000
$1,200,000

So the MEDIAN PRICE is somewhere between $300,000 and $315,000.

To calculate the MEDIAN PRICE, you just take the two values in the middle and divide by 2:

MEDIAN PRICE = ($300,000 + $315,000) / 2 = $307,000

So here we’ve calculated that the MEDIAN HOME PRICE in this city is $307,000. As you can see, this is very different from the Average Home Price of $457,000.

This is an important distinction to make because the AVERAGE PRICE in this city is greatly influenced by the one expensive home at the top of the market selling for $1,200,000. But, the MEDIAN PRICE is just an even count of how many homes are above or below the midpoint – a more accurate representation of prices in a neighborhood.

You can use the same analysis for other key statistics such as DAYS ON MARKET. Suppose that you have a couple of properties that have been on the market for an extended time. If you use AVERAGE DAYS ON MARKET, the number will be much higher than if you were to calculate the MEDIAN DAYS ON MARKET.

Here’s a specific example:

What if you’re working with a buyer that can afford up to $325,000 for a home? If you use the AVERAGE PRICE of $457,000 for the neighborhood, it appears that that area might be too expensive for the buyer. But, if you use the MEDIAN PRICE of $307,000, then this neighborhood will be right in the buyer’s zone.

In the Altos Research reports and AltosCharts, we provide both AVERAGE and MEDIAN statistics so that you can see how these differ in every market that we cover.