The total dollar value of all homes sold divided by the number of sales in a given period. It's the most commonly reported price metric in the media and is easy to understand, but it can be heavily influenced by outliers. A few mansion sales or a shift in the mix of property types can push the average up or down without reflecting actual price changes.
Why It Matters
The average sale price makes great headlines but can be misleading. If more condos sell one month and more detached homes sell the next, the average will swing dramatically even if no individual home's value changed. Use it as one data point alongside benchmark and median prices.
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