Phoenix Real Estate Statistics: Average vs. Median Home Prices

Desert Harbor FishingMark Twain is credited with popularizing the phrase, “Lies, damned lies, and statistics”. Obviously,  he was aware how data can be manipulated, misleading and  needs to be understood in the proper context.  In real estate, we deal with statistics on a daily basis.  In an effort to understand trends, we encounter the terms “average sales price” and “median sales price”.  Both of them use the same set of data. Its just how you look at the data so it is useful to understand the difference between the two terms.

 

Median vs. Average Price in Real EstateCoral Point - The Falls waterfront

The calculations for average and median prices are fairly straight forward.

The median of a set of numbers is that number where half the numbers are lower and half the numbers are higher. When we’re considering real estate,  that means that the median is the price where half the homes are less expensive, and half are more expensive.

The average of a set of numbers is the total of those numbers divided by the number of items in that set.    For example:

Median  vs Average

For the data to the left let’s determine the median and average for these 11 houses.  The value or median where there are an equal number above and below is $210,000.

To calculate the average we add the prices of the 11 homes which gives a total of $3,385,000. Now divide this by 11 and the average house price is $307,727.

As you can see, the difference between the median and average is almost $100,000!  The distribution of the data is the key.  The median will keep the outliers on the extremes from overly influencing the  calculation.

Waterfront on Ocotillo Lakes with boatSo when you’re listening to someone talk about the median vs. the average price per square foot, it’s important to understand the different and how the distribution of the data can affect the outcome.

If you’re looking for that special home but need help finding it, go to send me listings and describe what you’re looking for and I’ll be glad to help.

Related Posts

The Islands properties with a great view

Phoenix Luxury Waterfront Property

Gilbert Waterfront and Lake Communities

Riverview Park in Mesa

$625,000 :: 4732 S GRISWOLD Street, Gilbert AZ, 85297

Property Photo

Mls Icon

4 beds, 3 baths
Home size: 2,899 sq ft
Lot Size: 10,890 sq ft
Added: 04/18/20, Last Updated: 07/13/20
Property Type: Single Family
MLS Number: 6067788
Community: LAYTON LAKES PARCEL 1 2ND AMD
Tract: LAYTON LAKES PARCEL 1 2ND AMD
The price of this listing was last reduced on 7/13/2020 by 2%
Status: Active


Rare Opportunity! This incredible single-level home has loads of high-end upgrades and is on a sensational, hard to find lake lot in Gilbert. Home has recently had a new hot water heater and soft water system installed and is freshly painted. Office can be easily converted into a bedroom to make this a 5 bedroom home. The Layton Lakes community offers several walking/biking trails, playgrounds, splashpad and so much more. This home is truly move-in ready!!

Listed with HomeSmart


Brought to you by Gordon Baker, Remax Alliance Group. Call me today at 480-326-8571, or visit my website at www.myhomeinaz.com/!


$775,000 :: 1441 E CATAMARAN Drive, Gilbert AZ, 85234

Property Photo

Mls Icon

4 beds, 2.5 baths
Home size: 3,378 sq ft
Lot Size: 12,633 sq ft
Added: 05/09/20, Last Updated: 07/02/20
Property Type: Single Family
MLS Number: 6076420
Community: MISSION BAY ESTS AT VAL VISTA LAKES AMD 1-73 A-D
Tract: MISSION BAY ESTS AT VAL VISTA LAKES AMD 1-73 A-D
The price of this listing was last reduced on 7/2/2020 by 1%
Status: Active


Rare Waterfront 3378 sf Single Level in Val Vista Lakes! Lake Views visible from Entry, Formal Living, Family Room, Kitchen, Breakfast Room & Master Suite! Gorgeous Views of Lake & West Lake Homes. Full-length South-facing Cov'd Patio across entire back of home + Lighted Steps leading to Lake. Custom Floating Ceiling in Formal Dining, 3-way Gas Fireplace visible from Entry, Formal Living & Dining Rooms. Extensive use of Engineered Hardwood flooring. Immaculate w/Complete-Home Sound System, Nest System, Refrigerator, Washer, Dryer & Home Warranty all included! Val Vista Lakes features a $10 Million Clubhouse, Heated Jr. Olympic Pool, Sandy Beach, Spa, Tennis/Pickle Ball Club, Racquetball, Fishing, Boating & More! Very close to Dana Park Shops, Restaurants! Award-winning Gilbert Schools!

Listed with Keller Williams Integrity First


Brought to you by Gordon Baker, Remax Alliance Group. Call me today at 480-326-8571, or visit my website at www.myhomeinaz.com/!


$999,900 :: 1422 W COMMERCE Avenue, Gilbert AZ, 85233

Property Photo

Mls Icon

5 beds, 5 baths
Home size: 6,298 sq ft
Lot Size: 10,019 sq ft
Added: 02/01/20, Last Updated: 05/28/20
Property Type: Single Family
MLS Number: 6031674
Community: PLAYA DEL REY AMENDED
Tract: PLAYA DEL REY AMENDED
Status: Active


Live in 5,000 sq. ft. of the main home and put guests or a tenant in the 1,200 sq. ft. next gen suite which has a separate entrance. Wakesurf and wakeboard on your private lake from the dock in your own backyard. Owner will include the boat in the sale as a turn-key lakefront luxury experience.

Listed with West USA Realty


Brought to you by Gordon Baker, Remax Alliance Group. Call me today at 480-326-8571, or visit my website at www.myhomeinaz.com/!


Leave a Reply

Your email address will not be published. Required fields are marked *