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Understanding “Median” Sales Price
from KCM and DPR Realty June 2023 National and Local AZ Housing Market Update, Shambreskis and Howard
Here’s a simple way to explain “median” value: You have three coins in your pocket. Line them up in ascending value (lowest to highest).
If you have one nickel and two dimes in your pocket, the median value of the coins (the middle one) in your pocket is 10 cents.
If you have two nickels and one dime in your pocket, the median value of the coins in your pocket is now 5 cents.
In both cases, a nickel is still worth 5 cents, and a dime is still worth 10 cents.
The value of each coin didn’t change.
In today’s housing market, we are selling more of the lessexpensive homes, thus driving down the median price. It doesn’t accurately reflect the value of each house.
