Good question. First, while I know you stated that you knew the definitions of the two (median and average), to answer, I have to repeat what you already know.
Median price = 50% above and below the middle price point.
Average = all home sale price added together and divided by the number of sales.
OK. Now, in the US, the median sale price of homes is going DOWN. Why, because homes on the lower end have the biggest turnover (sell faster) and homes on the upper end (that tend to increase the average price) are moving more slowly. Also, there are fewer UPPER END homes. So, when they do sell, the average goes up. In some areas, the upper end tends to be insulated from the subprime mess we are in nationally, in others the time on market spreads out to 6, 12 18 and even 24 months. The actual NUMBER of homes in an upper tier (say $1,000,000 to $1,500,000) may be10 or 15. So, one sale at $1,500,000 !moves the AVERAGE up pretty quick. But this does NOT mean you can sell an upper tier home faster than a home below the median. The LINK below gives an interesting perspective on the two measurements when referring to income. Might help.
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