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The Median Home Price Is Meaningless
from KCM and DPR Realty June 2023 National and Local AZ Housing Market Update, Shambreskis and Howard
Median prices are distorted by the mix and repeat sales indexes like Case-Shiller and FHFA are probably better for measuring prices.
- Bill McBride, Calculated Risk Blog
The median sale price measures the ‘middle’ price of homes that sold, meaning that half of the homes sold for a higher price and half sold for less . . . It is not very useful for measuring home price appreciation because it is affected by the ‘composition’ of homes that have sold. For example, if more lower-priced homes have sold recently, the median sale price would decline (because the “middle” home is now a lower-priced home), even if the value of each individual home is rising.
- Center for Real Studies at Wichita State University
