The median home price is the middle value of home prices in a specific area, meaning half of the homes sold are priced above this value and half are below. It is often used as a key indicator of the housing market's health, providing a clearer picture than average prices, which can be skewed by extremely high or low sales. To calculate the median home price, all home prices in a given area are listed in numerical order, and the middle price is identified. If there is an even number of homes, the median is the average of the two middle prices. This measure helps buyers and sellers understand market trends and make informed decisions.