Gem County market snapshots… don’t you just love the numbers?
Sometimes its easier just for someone to tell you what it is saying and that’s what we are here for.
What’s the difference between median and average sales prices and how are they calculated?
“As it relates to residential real estate, the average – or mean – sales price is calculated by adding all home prices, then dividing that by the number closed sales.
The median sales price lists all prices in ascending or descending order and finds the midpoint – where half the homes sold for more, and half the homes sold for less.
Let’s break it down even more. Something like this would not necessarily be uncommon in a given geographic market segment:
$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: $1,014,286
Median: $200,000
Many times, one would think an average would give a more accurate representation of the data. However, as you can see from above, the median is the better option. “
#sweethomerealtygrp #gemcountyidaho #whatdoesmedianmean? #averagesales price
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