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Real Estate Word of the Day: Variance

In statistical terms, variance measures how much a set of numbers (data points) differ from the mean (average) of those numbers. It provides insights into the spread or dispersion of data points in a dataset. A higher variance indicates that the numbers are more spread out from the mean, while a lower variance indicates that they are closer to the mean.

While it might seem like a term plucked straight out of a statistics textbook, its implications in real estate are profound and worth understanding. Understanding the variance in property values within a specific neighborhood or region can help investors assess the potential risk and return. A high variance in property prices might indicate a diverse market with…

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