Quite often you will see average sold prices for real estate listings or it may say median sold prices, but what is the difference and is there an advantage of one over the other?
Average sold price is simply the sum of all the sold prices divided by the total number in the dataset.
Median price is the middle number in a set of sold prices when listed in order. So for example if you were looking at the sold price for 5 homes you would put them in ascending (or descending) price order and the median price would the the 3rd number in the list so you had an equal number of homes above and below the median. If you have an even number of prices then you take the 2 middle numbers and divide by 2 to get your median sold price.
So as an example we have 5 sold prices:
In this example the average and...