When you’re looking at real estate statistics, you may see both average and median sale prices. But what’s the difference?
Average Sale Price
The average is calculated by adding the sale prices of all the homes sold and dividing by the number of homes sold.
Median Sale Price
The median is the middle sale price. Half of the homes sold for more, and half sold for less.
Why Do Both Numbers Matter?
The average price can be influenced by a few very high- or low-priced sales. For example, a handful of luxury home sales can push the average higher.
The median price is less affected by those extremes and can provide a better picture of the price of a typical home sold in that market.
So, which number should you look at?
Both! Average and median prices tell you different things about the market, and looking at them together can give you a better understanding of what is happening.
And remember, real estate statistics can vary significantly by location, property type and price range. That’s why local market data matters.
Curious about what’s happening in the Sarasota market?
Call or text me at 941.993.3125
Larry Brzostek, CRS, CLHMS, ABR
RE/MAX Alliance Group, Sarasota, FL