Real estate pricing deals with the valuation of real estate and all the standard methods of determining the price of fixed assets apply.

The median home price is one of the most common measurements mistakenly used to compare real estate prices in different markets, areas, and periods. It is said to be less biased than the mean (average) price since it is not as heavily influenced by small number of very highly priced homes. However, this is not true. Actually, it is more biased than the mean because it is more easily influenced by abnormalities in the market, such as an extraordinary influx of say, low-selling foreclosure sales prevalent in an economic downturn. This is due to the tiny sampling size of just 1 (or at best) 2 sales that the median sale represents. The median introduces an unacceptable level of Sampling error. The mean, though not perfect, is superior to the median because it at least eliminates sampling error by utilizing all of the available sales.

Rents and prices are often expressed per square foot to act as a basis of comparison.

Home prices are limited by various factors, such as the incomes of potential buyers, the cost and ability to construct new property to increase supply, and demand for rental units. Since eighty percent of all homes purchased are purchased with a mortgage, the ability to make payments, borrow money, and the cost of borrowing money are major influences limiting how far prices can rise before hitting resistance due to prices hitting levels where potential are unable to qualify. In general the ratio in the US are home values at 2-4 times annual income levels.