Average price: All sold prices are added together into a sum;
the sum is then divided by the number of houses that sold.
An answer to an earlier Trulia Thread with the same question:
The big difference between the median and mean is illustrated in a simple example:
1. Suppose 19 workers and 1 billionaire are in a room. Everyone removes all money from their pockets and puts it on a table. Each worker puts $5 on the table; the billionaire puts $1 billion there.
The total is then $1,000,000,095. If that money is divided equally among the 20 people, each gets Â£50,000,004.75. That amount is the average amount of money that the 20 people brought into the room.
But the median amount is $5, since one may divide the group into two groups of 10 people each, and say that everyone in the first group brought in no more than $5, and each person in the second group brought in no less than Â£5. In a sense, the median is the amount that the typical person brought in. By contrast, the average is not at all typical, since nobody in the room brought in an amount approximating $50,000,004.75
With average, you add up all the numbers, divide that number by the amount of numbers in your sequence, and you get the average. In the example above, you take 1+1+2+2+2+3+4+5+5+6+10=41. Divide 41 by the amount of numbers in the sequence, which is 11 (41/11), which equals 3.73. So 3.73 is your average.