What Does Median Price Mean?

Median Price

When discussing property values, the term ‘median price’ is often used to represent a standard value of the typical property pertaining to a region, suburb or state.

Many people get confused over the definition of what ‘median price’ stands for as it is often confused with the term ‘average price’.  Here are the basic definitions:-

Median A typical value that is identified by arranging a set of numbers in an ascending or descending scale and selecting the middle number (if there are an odd number in the set) or the arithmetic mean of the middle two numbers (if there are an even number).

Average (mean) An average obtained by adding together the individual numbers concerned and dividing the total by their number. For example, the average of the numbers 5, 10, 15, and 22 is 52/4 = 13. 

To illustrate the difference between the ‘Median’ and the ‘Average’ prices of property, I have listed below a hypothetical list of the selling prices of seven properties in the same suburb.



Prices of each property sold


 Median Price Average Price


The middle price that has equal number of higher and lower prices above and below it

= $395,000


The sum total of all properties, divided by the number of properties

$3,550,000 / 7

= $507,143



From the above table we can see the difference between median and average. In real estate it is more common to use the median price as this price is more likely to represent the typical price. The average price is more likely to be skewed by a few unusually low or high priced properties.  The more properties there are in the sample size the closer the median and average price will be in relation to each other.

At Property Friends we strive to buy our investment properties at or below median price to best represent fair value and to make sure we are not over capitalising by spending above the typical market values.

This gives us the best possible chance of obtaining great capital gains in a rising market and minimising our downside in flat or declining markets.

You can learn more about our approach to property advising here , or alternatively, feel free to get in touch and have an obligation-free chat about how Property Friends can help you.  

For daily property investment updates follow our Facebook page here.

Property Friends is a specialist Property Investment Strategist that provides solutions for people aspiring to financial independence, choices in retirement, or leaving a legacy. www.propertyfriends.com.au (03) 9758 5331

Interested in receiving our Monthly Newsletter, which is jam packed with valuable property invested information that is not to be missed

Enter your details here to get access to our Ebook on How to Avoid 7 Biggest Mistakes when Investing in Property

Book a discovery call


Looking to understand the world of property investments better? We can help!

Uwe Jacobs Property Strategist

Do You like what you see?

So, you are interested in learning more about it?  Click the below link and we will keep you updated, NO SPAM - ever...
And of course you can unsubscribe any time - no questions asked.

Congratulations, you will be receiving very valuable updates from us. Can you do us both a favour? Can you please "whitelist" the email address that our info will come from? It will be "

Share This