The change in average home price is affected by two factors:
- The proportions of home types sold has changed. This means that the mix of homes sold has shifted from a majority of higher-priced homes to a majority of lower-priced homes, or vice versa.
- Assuming the mix of homes is relatively stable, all homes are being sold for more or less than the last period.
For example, if the average price decreased from last year, all homes sold this year were either sold for less and/or the majority of them were budget-friendly condos, rather than expensive single-family homes.How we calculate our stats