MARKET UPDATES
What is median price and why does it matter?
By Steve Lockhart
The short answer
Take every home that sold in a given month, line them up by price, and the median is the one in the middle. Half of the sales are above it and half below it.
Full answer
Take every home that sold in a given month, line them up by price, and the median is the one in the middle. Half of the sales are above it and half below it. Because one very expensive sale or one very cheap sale does not move the middle, the median gives you a steadier read on the market than the average, which gets yanked around by a few outliers.
The median for the whole valley is a useful temperature reading, but it is a blend of everything: condos, luxury estates, new builds, and resale homes in every corner of the metro. It tells you the general direction of the market, not the value of any particular home. That is why the median you see quoted in the news and the number that matters for your street can be very different.
When you track the median month to month or year over year, you are watching whether the middle of the market is moving up, down, or sideways. That direction, combined with inventory and days on market, tells you the character of the market better than any single number.
For the value of your own home, the median is starting context, not an answer. Value comes from recent sales of comparable homes, your condition, and your location. I can put the current numbers and your specific comps side by side on a call.
A note from Steve: market conditions change every month, and numbers quoted anywhere can go stale quickly. The guidance on this page is meant to stay true across markets. For the latest Southern Nevada figures, check the Market Updates page or ask me directly, and I will read the current data through your situation.
Go a little deeper
Frequently asked
Questions people often follow up on
Why do the median price and my home's estimated value not match?
The median blends the whole market while your home's value comes from specific comparable sales in your area, with your size, condition, and feature differences. Two homes a mile apart can sell for meaningfully different prices for reasons the median never shows.
Does a rising median mean my home gained value?
Not automatically. A rising median can mean prices are going up, but it can also mean the mix of homes selling changed, for example more luxury sales or more new construction. The way to know about your home is to look at recent sales of homes like yours.
The Lockhart Method
The Lockhart Method
Your Home | My Strategy | Proven Results
My strategy: we use the median to understand the direction of the market, then set it aside and value your home from actual comparable sales. The median answers how the market is doing. Your comps answer what your home is worth. They are different questions and both deserve a real answer.
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