The Median Price in the recently-released October ARMLS resale sales reports is $250,000 which is an increase of $100 since the September reports.  The Average Price also increased this month, from $324,400 to $331,200.  The graph below displays both the monthly Average Price and Median Price of resale homes sold in MLS from January 2002 through October 2006.
 

The average price is calculated by dividing the sum of the sales prices by the number of homes sold.  The median price is determined by finding the price where the quantity of homes sold for less than that price is equal to the quantity of homes sold for more than that price.  The median is a better indicator of the overall market.  Note the similar pattern of both measures. Source: In-depth Analysis