The "Average Price" shows the sum of all sales prices divided by the number of sales. Have prices been increasing, decreasing, and how fast?
Source: MLS (Multiple Listing Service)
Our opinion of what it meansJanuary 2012: The average sales price for December was $548,333.
In Santa Cruz County, we have a few very expensive homes, such as those fronting Monterey Bay. Because of that, the average price tends to be a higher number than the median price here.
BACKGROUND: 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.