Median Price Preferred Over Average Price for Real Estate Reporting

The Quebec Professional Association of Real Estate Brokers (QPAREB) has clarified its methodology, stating a preference for using the median property price over the average when reporting market trends.

The median price signifies the midpoint of all real estate transactions, where 50% of sales occur below this price and 50% occur above it. For example, a median price of $250,000 means half of the properties sold for less, and half for more.

The key advantage of the median is its resistance to outliers. Average prices, conversely, can be significantly skewed by a few exceptionally high or low-priced sales. If a property in an area with typical prices between $250,000 and $300,000 sells for $2,000,000, this single transaction can inflate the average, misrepresenting the general price movement.

This means the median provides a more accurate reflection of the market's typical price level and its changes over time. QPAREB also noted that the reliability of any price indicator, median or average, depends on the volume of data. A minimum of 30 transactions is required to ensure that the reported price provides a valid measure of market value.