The "Median Price" shows the price at which there were an equal number of sales higher than or lower than that price. Have prices been increasing, decreasing, and how fast?
Source: MLS (Multiple Listing Service)
Our opinion of what it meansJanuary 2012: The median sales price for condominiums and townhouses in December was $249,000. The median price for condominiums and townhouses is generally inconsistent because of the small number of sales.
BACKGROUND: The condo/townhouse graphs do not show as smooth a transition from month to month as the house graphs. This is because there are far fewer condo and townhouse sales in Santa Cruz County than house sales. In the field of statistics, a larger quantity of numbers makes a better statistic. Here, we are working with very few numbers (25 to 75 sales per month). Occasionally, a few very expensive condos sell in the same month, and the graph takes a jump that month.
People who keep statistics argue whether the median price or the average price is a better indicator. The average price is calculated by totaling the sales prices and dividing by the number of sales. The median price is that price where an equal number of sales occurred at a higher price and a lower price than the median.