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Market data

Median vs Average

The median is the middle value in a set of prices while the average is the arithmetic mean; the median resists distortion from extreme deals.

In market reporting, the average (mean) sums all prices and divides by the count, but it can be pulled upward by a few very expensive sales, whereas the median is the midpoint where half of deals are higher and half lower. For property markets with occasional trophy transactions, the median often better represents the typical deal. Reading both together, along with sample size, gives a clearer picture than either figure alone.

Related terms

  • Price per Square FootPrice per square foot is a property's price divided by its area, used to compare value across units of different sizes.
  • TransactionA transaction is a recorded property deal, whose registered price and details form the raw data behind market analysis and comparables.
  • Comparable (Comp)A comparable is a similar, recently transacted property used as an evidence point to estimate another property's market value.
  • AbsorptionAbsorption is the rate at which available properties are sold or leased over a period, signalling how quickly a market is clearing supply.

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