I am trying to understand and read the market graph chart on items, its been a very hit and miss affair at the moment but I think I am finally beginning to understand. From this shot how would you read the market on this item?
For me I am thinking that it is a relatively slow moving item that was selling slowly but surely at around the 240m mark but at around 300m the locals have decided that it is overpriced and despite a couple of sales at that higher end the market has died. Would you say that is an accurate assumption?
The median and average prices all increased but the volume levelled out. Which indicates a genuine price increase and not some statistical aberration due to one or a few people paying hugely more. One person paying a huge amount would not affect the median but would affect the average. If the average went up but the median didn’t…that is how you would know that it was due to a few sales being disproportionally high price.
For example…
If you take all the numbers from 1 to 100, the median is 50.5 and the average is 50.5.
But…if you changed the value of 100 to 1,000…the median is still 50.5 but the average is now 59.9
The difference between median and average give you a good idea if there are people paying way above or below the median price.
The sample size for sales of this specific product in this specific location is too low to establish and trends or form any predictions. When there are so few transactions, all you can do with the data is treat it as a historic snapshot (e.g. “are there any buyers in any reasonable amount of time if I decide to sell this item here?”), and not use it for any sort of formal analysis.
