Deciphering Statistics

Home Sales and Statistics

Lots of statistical terms are bandied about when real estate data is analyzed and results are made public. Here are definitions of a couple of the most common terms and how they affect the numbers being reported.

• Median is the true midpoint in a data sample, such as the number of new homes sold in November in Virginia. So if you made a list showing the number of homes sold in each reporting region in Virginia, you’d go to the very center of your list to find the median.

• Average is all the data values in a set added together, then divided by the total number of data values. So you’d add up the number of new home sales for each region reporting, then divide by the number of regions to find the average number of new home sales.

Medians are most useful for large data samples, but not as meaningful when the samples are small. And because averages can be skewed by extremes, they’re most helpful when viewed over time.

Many variables affect statistics, and it’s impossible to correct for all of them. That’s why it’s important to look at current real estate statistics and compare them to past reports. This type of comparison over time helps identify trends and offers insight and guidance for home buyers.   

As a resource for home buyers, Valley Real Estate News regularly  posts the latest statistical reports on Harrisonburg and Rockingham County, Virginia home sales, courtesy of the Harrisonburg/Rockingham Association of Realtors.