Mean vs Median Price & The Toronto Real Estate Market
Average price is easily influenced by higher or lower than typical sales and is never a true representation of what’s available in any market.
Median price tracks the exact middle of the market. If the middle is trending up when comparing various time periods then it’s a tell tale sign of a strong Seller’s market.
Examples of Median Price & Average Price in Toronto Real Estate
Example 1: If you have a budget of $800,000 and you’re looking in an area with a Median Price of $1,200,000 and average of $1,400,000 then you’re likely better off looking in a different area or adjust your expectations and consider a different property type like a condo. Your $800K here isn’t likely to get you a house that’s move-in-ready.
Example 2: Using the same example as above, if you have a budget of $800K and the area you love has an average price of $1,200,000 but a Median Price of $950K that means that there should be a collection of houses well under the average price that you may be able to afford. Half the homes sold were under $950K in this case so a greater chance of finding a move-in-ready option here vs. in example 1.
Not to say you won ‘t find an $800K or less option in Example 1 but the higher the median, the less habitable or desirable the lower price points will be.
In example 2, the higher average speaks to the strong activity in the higher price points but the lower median price let’s us know that the lower price points are well represented as well.
How to reach me
I’m a numbers guy with a specific focus on the Urban Communities of Toronto. Context is king so please allow me to break it down for you wherever you live (or want to live). My numbers are very different than what you may read out there as most agents, media, and TREB always report on GTA wide of National data..which is irrelevant to you, the urban dweller/buyer/seller/enthusiast 🙂
If anything is unclear please do not hesitate to contact me via the live chat below or my contact page. Or feel free to text 416-434-1511 or email anytime as well ara [at] TheSpringTeam [dot] ca.