When you hear that the median sales price of homes in Franklin County or Hampshire County has increased, what does that really mean? Does it mean your home is worth more? And why do we use the median sales price rather than the average price when reporting real estate market statistics?
These are important questions because understanding how market statistics are calculated can help buyers and sellers make better-informed decisions.
What Is the Median Sales Price?
The median sales price is the middle price of all homes sold during a particular period when those sales are arranged from lowest to highest.
For example, let’s say five homes sold at the following prices:
❖ $250,000
❖ $275,000
❖ $300,000
❖ $325,000
❖ $850,000
In this example, the median sales price is $300,000, because it is the middle number, with two homes selling for less and two selling for more.
The average sales price, however, is calculated differently. You add together the prices of all five homes and divide by five. In this example, the average sales price would be $400,000.
That’s a $100,000 difference between the median and average prices, even though we’re looking at exactly the same five sales.
Why Do We Use the Median Instead of the Average?
The National Association of REALTORS® and real estate organizations commonly use median sales prices when reporting housing market statistics because the median is generally less affected by unusually high or low sales.
This is particularly important in Franklin and Hampshire Counties, where we have a wide variety of properties and price ranges.
In any given month, we might see modest homes selling in the $200,000 range while larger homes, luxury properties, or homes with substantial acreage sell for $800,000, $900,000, or considerably more.
Just one or two higher-priced sales can push the average price upward, making it appear that homes generally sold for more than they actually did.
The median price helps reduce that distortion by focusing on the middle of the market rather than the total dollar value of all sales.
However, it’s important to remember that the median is not a perfect measure. Changes in the types and price ranges of homes being sold can also influence the median.
Why We Compare Year Over Year Instead of Month to Month
When I report our monthly real estate statistics, I compare the same month from one year to the next rather than simply comparing one month to the previous month.
There’s a good reason for this.
Real estate activity is seasonal, especially here in New England. Spring and summer generally bring more buyers and sellers into the market, while the winter months often experience fewer transactions.
Comparing February sales with March sales, or July with August, may reflect seasonal changes rather than a meaningful shift in market conditions.
By comparing August 2026 with August 2025, for example, we can get a more useful picture of how the market has changed over the past year.
Even with year-over-year comparisons, it’s important to consider the number and types of homes sold, particularly in smaller markets where a limited number of transactions can have a noticeable effect on the statistics.
Does an Increase in the Median Price Mean Your Home Has Increased in Value?
This is probably one of the most important distinctions for homeowners to understand.
Let’s say I report that the median sales price in Franklin County increased by 8% compared with the same month last year.
That does not necessarily mean that a home worth $400,000 last year is now worth $432,000.
What it means is that the middle price of the homes sold during that reporting period was 8% higher than the middle price of homes sold during the same period the previous year.
Perhaps more higher-priced homes sold this year. Maybe fewer lower-priced homes were available. Or perhaps market conditions have pushed prices higher across several price ranges.
All of these factors can influence the median sales price.
The median tells us something about the overall market, but it doesn’t tell us exactly what any individual home is worth.
How Do You Determine What Your Home Is Really Worth?
While market statistics provide valuable information, determining the market value of an individual property requires a closer look.
That’s where a Comparative Market Analysis, commonly referred to as a CMA, comes in.
A CMA prepared by an experienced local real estate professional examines comparable properties that have recently sold, along with current listings and market conditions.
It also considers the characteristics that make your property unique, including:
❖ Location and neighborhood
❖ Size, layout, and style of the home
❖ Age, condition, and improvements
❖ Lot size, acreage, and setting
❖ Recent sales of similar properties
❖ Current competition and buyer demand
Two homes in the same town, or even on the same street, can have very different market values depending on their condition, features, and location.
This is why local market knowledge is so important.
Understanding the Numbers Helps You Make Better Decisions
I believe it’s important for buyers and sellers to understand the statistics we report each month and what those numbers actually represent.
The median sales price is a useful tool for following market trends, particularly when comparing the same period from one year to the next. But it’s only one piece of the overall real estate picture.
Whether you’re considering selling, thinking about buying, or simply curious about the value of your property, understanding the difference between general market statistics and your home’s individual market value is essential.
The numbers tell us what’s happening in the market. A Comparative Market Analysis helps us understand where your home fits into that market.
If you’re wondering what your home might sell for in today’s market, I’m always happy to help you take a closer look.
Corinne Fitzgerald, REALTOR®
FITZGERALD Real Estate
Serving Franklin County and Beyond
fitzgerald-realestate.com