What is the difference between median sale price and average sale price?
To calculate the median sale price, we first make a list of sales in the market area by arranging them from smallest to largest. The median sales price is then either: 1. the middle price in this list, if the list has an odd number of sales, or 2. an average of the two middle prices if the list has an even number of sales. To calculate the average sale price, we take the sum of all sale prices and divide by the number of sales. A median sale price is used as an indication of sales in a given area during a given time. It may be used instead of an average of all sales because the median is not affected by extremely low or high sales within the set.
