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Glossary · Market Metrics

Median vs. Average Price

Why every serious housing dataset reports medians, and when the average still earns its keep.

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Quick definition
The median sale price is the middle sale — half sold higher, half lower; the average (mean) is total dollars over total sales. Housing prices skew right (a few very expensive sales, no negative ones), so averages float above medians and jump when one estate closes. Medians resist that skew, which is why our pages — and most serious datasets — report medians. Neither statistic is immune to mix shift: if what's selling changes, both move without any home 'changing value.'

Why medians won

In a month with 30 typical sales and one $4M waterfront closing, the average lurches upward while the median barely moves. Because the phenomenon repeats everywhere at every grain, medians became the housing standard — stable enough to compare across periods, honest about the typical transaction.

What the average is still good for

Total-dollar questions: commission pools, tax-base arithmetic, portfolio values. When the quantity of dollars matters more than the typical transaction, means are the right tool. For 'what do homes go for here,' medians win.

Mix shift — the trap both share

If builders deliver a wave of townhomes, or luxury inventory stalls, the median falls without any repricing of existing homes. Guarding against it: watch price per square foot alongside the median, compare like segments, and read sales counts — all three appear on our community pages precisely so mix moves are visible.

Common questions.

Why do sites report median home prices instead of averages?
Prices skew right — rare, very expensive sales pull averages upward. The median (middle sale) resists that skew and better represents the typical transaction.
Can the median price fall while homes gain value?
Yes — mix shift. If cheaper product dominates a period's sales, the median drops without any individual home losing value. Price per square foot and segment comparisons expose it.
Which does Momentum publish?
Recorded-MLS medians, dated to their windows, with counts and price-per-square-foot alongside so mix effects are visible. No averages presented as 'the price,' and no model estimates.
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