Median price or average price: which number should you use?

Rob Redziniak

3 days ago

4 min read

Row of varied homes on a Charleston street

For most buyers, the median is the better guide to what a typical home costs, because a few very expensive sales do not pull it up. The average is still useful for total sales volume. Use the median to judge typical prices and ask what sits behind either number.

Tell me what you are looking for, or ask for a home value, and I will help you narrow it down. Use the buyer consultation form or the home value request.

What each one is

The median is the middle value: half of the sales were higher and half lower. The average adds every sale price and divides by the number of sales. Both are correct. They answer different questions.

A Charleston example

In my September 2026 update, the median closed-sale price across Charleston, Berkeley and Dorchester counties was $430,000 and the average was $712,146. The gap shows how a smaller number of high-priced sales raises the average. If you were shopping near $400,000, the average would tell you almost nothing about your market.

When to use the median

To get a sense of the typical price.
To compare one month with the same month last year.
To compare areas fairly.

When the average helps

To estimate total dollar volume of sales.
To spot how much the luxury end is affecting the picture.
As a check: a large gap between average and median tells you the market has a long tail of high prices.

What neither one tells you

Neither number says what your home is worth. Both mix large and small homes, new and old, waterfront and inland. For a particular home I compare recent closed sales of similar homes nearby and adjust for differences. For a county number, the mix of homes that sold matters. For example, a month with more new construction sales can move the median without any change in what existing homes are worth.

Questions to ask

Is this the median or the average?
Which area and which month?
How many sales are behind it?
Does it include new construction, condos and land?

My habit

I report the median first and I label which is which. I compare a month with the same month a year earlier and I read price next to days on market and the share of list price received. For more, see how to read Charleston home prices.

A second example with invented numbers

These numbers are made up. Imagine five sales in one month at $320,000, $340,000, $360,000, $400,000 and $1,250,000. The median is $360,000 and the average is $534,000. Now imagine next month's sales are $330,000, $345,000, $365,000, $405,000 and $450,000. The median is $365,000 and the average is $379,000. The average dropped by $155,000 while the typical sale barely moved, because last month's single large sale was gone. A reader who watched only the average would think the market fell sharply.

A checklist before you quote a price statistic

Say whether it is a median or an average.
Say the month or period and the area.
Say how many sales it covers.
Say whether it is a closed price or a list price.
Say where the figure came from and when you checked it.

Common mistakes

Comparing a median in one report with an average in another.
Reading a one month change as a trend.
Using a countywide figure to value a specific home.
Forgetting that a median says nothing about condition, lot or location.

How I use both numbers when I help you

For a quick read of the market, I start with the median because it is steadier. Then I look at the average to see whether unusually large sales are pulling it. I also look at the count of sales, because a median from a small group of sales moves more easily than one from a large group. For your own home or the home you want, I skip both and compare closed sales of similar homes nearby, adjusted for size, condition, lot and features.

A short list of habits

Always name the measure when you quote a price statistic.
Look at more than one month before you call something a trend.
Check the number of sales behind the figure.
Compare similar homes for a specific property, not a countywide figure.

My take: [ROB INPUT: add one or two sentences of your own view before this is published.]

Frequently asked questions

Which is higher, the median or the average?

In markets with some very expensive sales, the average is higher. September 2026 in my report is an example.

Can the median fall while homes are worth more?

It can, if the mix of homes sold shifts toward smaller or lower priced homes. That is why I look at several measures.

What number should I use for my home?

Neither. Ask for a home value based on nearby closed sales.

Sources, checked October 21, 2026

Where to go next

Keep reading: how to read Charleston home prices, how to read a market report, days on market explained. Browse all posts in Market and rates.