I have read newspaper article’s refer to the Median Price of a home vs the Average Price of a home, what is the difference?
These statistics are often referred to as a means of indicating the trend of the housing market pricing. The median price is the midpoint of all homes sold in a given period. Midpoint means half the homes sold for higher prices and half the homes sold for lower prices. The average price of a home is calculated by adding the price of all homes sold and dividing by the number of homes sold in the same time period. In a given period, the average home price may increase if fewer but most expensive homes sold, while the media price of homes may not be appreciating. It is helpful to understand the difference when establishing a price for your home.
