What is Median Price?
The real estate market price is susceptible to extreme values (ie, the highest and lowest prices), and the median price can reflect the concentrated trend of market changes and is more representative.
Median price method
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- Chinese name
- Median price method
- Brief introduction
- Select the median property price for compilation
- Features
- Easy to use median price method
- Use
- Concentration trend reflecting market changes
- The real estate market price is susceptible to extreme values (ie, the highest and lowest prices), and the median price can reflect the concentrated trend of market changes and is more representative.
- use
- The use of the median price method is very simple and does not require complicated programming procedures. To a certain extent, the median price method can better reflect the real situation of the real estate market than the arithmetic average method. Because although the weighted method can reduce the impact of real estate quality differences on the index to a certain extent, it cannot completely eliminate this effect; and over time, differences in real estate quality may have a greater impact on the index due to weighting. Error. Therefore, in the practice of foreign real estate price indexes, the arithmetic average method is mostly used for the compilation of land price indexes, and rarely used for the compilation of real estate price indexes.