Defining The Average Home In Tallahassee
If you are hunting the average home in Tallahassee, then you might find this article informative.
Of course, if you want an above average home (or even a below average home), then you first have to start by defining "average" when it comes to looking at the thousands of houses, townhouses, and condominiums that are bought and sold in Tallahassee each year.
For the purpose of this report, we will look at the mean, median, and mode of home sales prices over the past 12 years to determine what buyers have been doing and where the average really lies.
The Average Home In Tallahassee
There are many ways to define "average," so let's do a quick review before we look at the data:
- Mean – The sum of values divided by the number of values.
- Median – The middle value when the values are ranked.
- Mode – The most frequently occurring value.
The dots on the graph show each month's measurement, while the lines show the one year trend (average) of each category. The median is shown in red, the mean in blue, and the mode is shown in green.
Most real estate reports simply use the mean when they are seeking the average in the market. It is the most simple to calculate and you do not need any special tools or software to track it over time. Unfortunately, the mean reacts greatly to outliers. For example, if ten homes sell and 9 nine of them are $200,000 and one is $1M, the mean reports an average sales price of $280,000. If you were looking for the average home in Tallahassee, that result could mean that you would be looking at homes that were 40% pricier than 90% of the homes sold.
A tougher method that requires better tracking and "more math," the median is used to find the middle value. In the sample above, the median value would be $200,000, which is far more indicative to what the average home buyer has been buying in that example.
Finally, a method rarely used is the mode, which in the example above would also return $200,000 as it was the most often occurring sales price in the example. I have not put much energy in this type of analysis, but it could very well be useful for home builders looking for a niche entry into the Tallahassee real estate market.
Average Home For Sale In Tallahassee
The following list shows the ten most recent "average" homes listed for sale in Tallahassee, assuming you are looking for a home priced very closed to the median.
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I hope this quest for the average home in Tallahassee has been enlightening, please drop me a note if you would like more specific help in the Tallahassee real market.