Damn those $14,000,000 homes, they keep messing with the median average

3730 Washington…barely a month on the market at a meager $14,500,000, needing some pretty serious remodeling, and now contingency free (pending), which means it is highly likely the sale with go through.

MLS

[Update: A reader quickly catches our late night mistake. Thanks. “I think you mean, ‘messing with the average’. The median value is the the number that ends up in the middle of a sorted list of numbers (the average of the two middle numbers, if you have an even number of numbers).

If there are 1000 houses each priced at $1,000, the median price is $1,000. Adding a $14M home into the mix still yields a median price of $1000, but the average will go up to $14,985.– Statistics Nazi.”

And in case you need more ammo to laugh at our blunder, here’s a nice lesson on the median from Bryan Flanagan at Twin Cities Property Buzz.

More knowledge on the matter: What the Hell is the Median and Why Should I Care? from Submedian.]

Large and In Charge: 3730 Washington [theFrontSteps]

For Non-Math Majors: Median Home Price vs. Average Home Price [Twin Cities Property Buzz]

4 thoughts on “Damn those $14,000,000 homes, they keep messing with the median average

  1. I think you mean, “messing with the average”. The median value is the the number that ends up in the middle of a sorted list of numbers (the average of the two middle numbers, if you have an even number of numbers).

    If there are 1000 houses each priced at $1,000, the median price is $1,000. Adding a $14M home into the mix still yields a median price of $1000, but the average will go up to $14,985.

    — Statistics Nazi.

    [Editor’s note: Doh! You are correct. We are not. Thanks for the catch.]

  2. Don’t worry Alex, this is a common mistake for realtors to make. Just ask Kenny.

    ;)

    [Editor’s note: Careful….I’m a bit cranky today (still no surfing and a late night posting mistakes to this site), don’t tempt me to pick up the red pen and put you on on my black list. ;-) ]

  3. It was more like me accusing you of not knowing what medians are than myself displaying a lack of understanding for them. Either way, I was wrong and I admitted it. Thanks for dissing me a second time, on another web site, after I already aplogized, tho. :)

  4. Sorry guys, I just couldn’t resist. I’m a fan of both of you, so don’t take it personally.

    Hugs and kisses!

    [Editor’s note: None taken. I’m surprised you’re the only one to take it and run, frankly. I was expecting more.]

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