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Mean (average) home price |
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Written by admin
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Wednesday, 07 July 2004 |
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The mean home price, or average home price is the sum of prices of all homes sold in a certain area in a certain period, divided by the number of properties sold in the same area in that period. For example, inside the hypothetical Blackwoodwood Townhouse complex in Anytown, California, there were five townhouses sold in March of 2006.
The properties were priced as follows: one for $450,000, one for $459,000, two for $465,000, and one for $499,000. The sum of all of these properties is $2,338,000. This number is then divided by five, which equals $467,600. Thus, the mean home price for a townhouse inside Willowood was $467,600 in March 2006. |
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Last Updated ( Wednesday, 26 December 2007 )
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