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.

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$725,000 :: 1302 W Windrift Way, Gilbert AZ, 85233

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3 beds, 2.5 baths
Home size: 2,023 sq ft
Lot Size: 12,197 sq ft
Added: 04/22/21, Last Updated: 05/12/21
Property Type: Single Family
MLS Number: 6223848
Community: SANDCASTLE VILLAGE
Tract: SANDCASTLE VILLAGE
The price of this listing was last increased on 5/10/2021 by 4%
Status: Active


WELCOME TO YOUR PRIVATE ''OASIS'' IN THE ARIZONA DESERT! ** BRAND NEW TILE ROOF TO BE INSTALLED, JUNE 1ST! 10 YR WARRANTY! BRAND NEW A/C UNIT TO BE INSTALLED 5/20! INVESTOR VERY RARE OPPORTUNITY! ENJOY THE STUNNING VIEWS FROM THIS CORNER LOT WATERFRONT HOME! THE LAKE IS A PRIVATE LAKE THAT ALLOWS ELECTRIC PONTOON BOATS FOR YOUR EVENING COCKTAIL CRUISE!! THIS GORGEOUS HOME BOASTS A LARGE DIVNG POOL, HOT TUB AND PRIVATE DOCK THAT YOU CAN FISH FROM! RECENTLY REMODELED! PRIVATE LAKE DIRECT ACCESS! THREE BEDROOMS UPSTAIRS WITH AN ADDITIONAL LOFT! NORTH/SOUTH EXPOSURE!LIVE THE GOOD LIFE HERE IN THE ''ISLANDS!'' OWNER/AGENT

Listed with Apartments Now


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


$669,000 :: 395 W Sagebrush Street, Gilbert AZ, 85233

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4 beds, 2.5 baths
Home size: 2,993 sq ft
Lot Size: 9,148 sq ft
Added: 05/08/21, Last Updated: 05/08/21
Property Type: Single Family
MLS Number: 6233471
Community: LAGO ESTANCIA
Tract: LAGO ESTANCIA
Status: Active


Beautiful home on a premium lake front lot in the amazing community of Lago Estancia. Open floor plan with four bedrooms, loft and 2.5 baths. Amazing kitchen with upgraded cabinetry, plentiful pantry space. Flooring and bath finishes in tile, travertine, marble and slate. Upper level has solid French maritime pine flooring. 60k in upgrades since 2019 include new roof, high efficiency windows, AC system, exterior paint and pool. Serene backyard features two large covered patios, remodeled private pool, incredible lake views. One of very few homes with direct private lake access and no walking path traffic. Minutes from old town Gilbert on the water canal. Community has picnic area, walking and bike paths, children's park with playground. Don't miss this very special home.

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/!


$1,700,000 :: 188 N SHORE Lane, Gilbert AZ, 85233

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3 beds, 4 baths
Home size: 5,150 sq ft
Lot Size: 20,038 sq ft
Added: 05/07/21, Last Updated: 05/07/21
Property Type: Single Family
MLS Number: 6233011
Community: CRYSTAL POINT ESTATES
Tract: CRYSTAL POINT ESTATES
Status: Active


Amazing Custom home in your own gated Championship Private Water Ski lake with private dock. Heated Spa & Pool, commercial mist system, pool air conditioning & mist system. Fire pit system, back yard lake lined Tiki torches propane underground system, 40 ft slide gates at pool for lake view pool, 3 bedrooms + office on main level & 3.5 bathrooms. All bedrooms have private bathrooms, gas fireplaces and outside fire features, fire pits propane driven, game room upstairs with full bar, half bathroom, card room & deck overlooking the water and pool below. Gourmet kitchen with Dacor gas range, beautiful slab granite counters and monster walk in pantry. Full home security system & full property sound system, Property will convey AS IS - 50 Amp service at South side of home for RV hookup.

Listed with Prime House LLC


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


$575,900 :: 1025 W PENINSULA Drive, Gilbert AZ, 85233

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4 beds, 3 baths
Home size: 2,787 sq ft
Lot Size: 10,019 sq ft
Added: 12/05/20, Last Updated: 01/27/21
Property Type: Single Family
MLS Number: 6156476
Community: WINDHAVEN
Tract: WINDHAVEN
Status: Active


BEST PRICED WATERFRONT ISLAND HM.N/S.EXP.OVER 10K SF WATERFRT VIEW LOT W/94 FEET OF WATER FRONT & APPROX.120FT DEEP LOT.PRVT DOCK BRIGHT&OPEN.FORMAL LVG;DININGNOOK+FR.VAULTED CEILING.UPDATED FLOORING;GRANITE COUNTER KITCHEN CABINETS;WHITE WOOD SHUTTERS.SECURITY DRS@ENTRY&BACK PATIO DBL FRENCH DOOR. OVER-SIZED COV'D PATIO.WET BAR W/GRANITE COUNTER.ALL BATHS HAVE BEEN REMODELED.MASSIVE MASTER BR W/HIS&HER'S CLOSETSSEP.TUB/SHOWER.2 SINKS W/SPACIOUS COUNTER SPACE&STORAGE.DBL FRENCH DOOR W/SEC.IRON GATE WALK ON TO PVT WATER FRONT VIEW DECK FOR YOUR LEISURE MORNING RELAXATION -THEN RETURN TO ENJOY THE INCREDIBLE ARIZONA SUNSET-LIFE IS JUST PERFECT HERE. HURRY! CALL NOW FOR YOUR PRIVATE TOUR ARRANGEMENT. MUST SEE TO APPRECIATE. MASKS REQUIRED WHILE ON THE PREMISE.

Listed with FDR Real Estate


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


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