Median home price % increases?

Question

If the median home price represents the price where half of the homes sold above that price and half sold below it in a given market (a seemingly more conservative estimate than average home price which could be skewed by very expensive home sales), could one multiply their home purchase price by the % change in median home price to arrive at a fairly accurate estimate of what their home is presently worth? For example, if the median home price has gone up 25% over the past five years, would multiplying my purchase price by 25% give me an accurate estimate of the present day value of my house? Thanks.

Answer 1

If for some strange reason, computers continually got more expensive as the years went on (instead of cheaper), it would be the same thing as comparing it to median home values. It is a rediculous measurement, and you should not use it for any real appreciation judgement. Here's why: A home 30 years ago may probably didn't include stainless steal appliances, expensive flush carpeting, as well being the equivalent size of a high school auditorium. Nowadays, they do, and median prices are also up. Do you get my drift? You wouldn't compare a computer in 1990 to one today, because they've constantly been upgraded throughout the years. Obviously housing prices have gone up, but if you just look at the median value, you are comparing apples to oranges, if you try to look back, or project ahead. I hope this makes sense

Answer 2

Probably not. Even within the same city, it would depend on the neighborhood for even a rough estimate. In any city, the median increase usually includes some areas where it's a lot higher, and some where it's a lot lower or even show a decline. If you're in a small town, your way of estimating is probably valid.

Answer 3

the two are techniques of measuring the midsection. the mean or arithmatic general sums all the values and divides by ability of the selection or values. the median unearths the value wherein 0.5 the values are much less and 0.5 are greater advantageous than the value. median is utilized in abode expenses to offset large-costly homes that would desire to sharply inncrease the mean. a similar is ordinarily performed for earnings and wealth stages. bill gates weath on my own could upload $4 hundred to the conventional family contributors wealth. for many variables, mean and median are not very distinctive

Answer 4

not absolute-- the price or value of your home is determined by your market only. what are similar homes of age and style within a 2 mile area selling for is more the factor. Remember location location location.