Median Sales Price vs. Average Sales Price

Pretty simple but worth explaining.  When I talk about Chicago Real Estate I normally provide information in two categories when it comes to pricing.  Median & Average Sales Price.  Here is the plain and simple explanation:

Median Sales Price:  The midpoint between the most expensive house and the least expensive house sold in an area during a specific time. The midpoint of the price of homes - equal number of properties sold above the median price as the number of properties sold below the median price.  The Median Sales Price is often used as an indicator of the strength and the direction of the real estate market. 

Average Sales Price:  This is more plain and simple.  You take the number of properties you are looking at and you add up their total.  Once you have that number you divide by the number of properties and you have the average sales price for that particular search. 

One thing I will warn you about.  Be very careful when looking at statistics published in newspapers or other publications.  These are just ways to spot trends in certain areas.  When it comes to selling or buying a home always consult a REALTOR to help you with specific properties.  Both sales price include a wide range of properties in any given neighborhood.  When pricing your own home you’ll want to look at the stats of just the properties that would be considered “comparable” to what you have.  As always, feel free to contact me with any questions or clarification.