Welcome to the first installment of Real Loop, the lowdown on home sales and prices. A Real Estate Market Update September 2020 for Coos County with special highlights on Bandon, Coquille, Coos Bay & North Bend Oregon.
The Difference Between the Median Sale Price and Average Sale Price:
The average sale price is calculated by adding all the sale prices for homes sold in a specific area within a specified time frame and dividing that total by the number of properties sold.
For instance, if ten properties sold in a city in the last 30 days, the average home price would be calculated by adding the sale prices for all ten properties and dividing that figure by ten. The problem with the average sale price is that if one or more properties were sold at an extraordinarily high or low price, the average is skewed higher or lower as a result.
In this case, the average becomes a somewhat unreliable metric. The median sale price, on the other hand, is the sale price in the middle of the data set when you arrange all the sale prices from low to high. The median sale price, then, represents the figure at which half of the properties in the area sell at a higher price and other half at a lower price.
The U.S. Census Bureau lists national median and average sale prices for the past several decades, and the Federal Housing Finance Administration uses these and other figures to create the House Price Index.
Population from U.S Census Bureau and https://worldpopulationreview.com/