Geek's Number Talk: Median vs. Average
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A variety of factors can affect home values — location, architectural style, curb appeal, square footage, condition, views, amenities, extra rooms, parking, decks and yards, privacy, lot size, demographics, environmental factors, and so on. And there is typically a wide or even vast spectrum of homes in any given market area, especially a large one like the Bay Area. This can lead to mean or average values that don’t tell the full story because of fluctuations at either end.
That’s why it’s important to look at median values, which fall smack in the middle of all sales. Median values can be affected by factors unrelated to fair market value, and anomalous fluctuations are common, especially in smaller and/or very expensive markets over shorter time periods. But over the long term, they are a much more reliable indicator of actual market value.
Without a specific comparative market analysis, it can be hard to know the factors impacting a particular property. For example, looking at these charts, median house values for Napa and Sonoma Counties were limited to homes on lots of two acres or less. Not every town or city within the Bay Area is included here, so please contact us for more!
