Real estate pricing deals with the valuation (finance) and there are three main methods: appraisals with comparable properties, capitalization rate comparisons with similar income producing properties, and discounted present value of expected future cash flows.
After realty prices are estimated, recorded or otherwise reported, there remain two major ways in which aggregate home prices are reported: median and mean (average). Prices are also calculated by square foot, using both the mean and median price. Real estate prices have had a profound impact on urban, as well as the suburban and rural landscape. The most important government measurement of home prices in the United States is the house price index. Median house prices are reported for metro areas and regions of the country by the private National Association of Realtors.
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