The sales price divided by the square footage of the home. I use this calculation this all the time in my market area (for active listings, then a separate summary for solds). If you take all the homes sold in a particular neighborhood and do an average for $ per SF = this certainly tells a story. There are always going to be some that are less than average and some more (this is obviously determined by the location and the ammenities. It is not an exact science and some agents won't use it but I use it and it certainly shows a homeseller a picture. If you do this for all the homes in your neighborhood ---I'm sure it will show you in a summary perhaps some homes which are overpriced. I hope this helps
Perform this calculation for say the last 3 or 6 months of sales in your neighborhood and you will get an average. Good luck.
Example: Selling Price = $400,000, SF of the home is 2300
$400,000 / 2300 = $173.91 or rounded to $174 SF