median

This term refers to the middle value of a set of results compiled on a certain subject. For example if one where to find out that a certain area had house sales varying between R400 000, R450 000, R500 000, R525 000 and R575 000 the median price/value would be R500 000. This is because it was the result in the middle, if there are an even number of properties then the two numbers in the middle would be averaged out to get the median. The reason an average isn’t used is because they can include anomalies that give an inaccurate idea of the value of homes in an area. For example if a normal property in an area costs between R550 000 and R750 000 and there is one very large and expensive estate included in the area that is sold for R5 000 000 it will give give an inaccurate prediction of the average home price in the area if calculated as an average. That is why a median is preferred.