A real estate price is generally calculated based on square foot, using mean and median prices. Some countries like USA fix a price for a house; they give an average value for house. People can buy houses based on that price. In 2005 there was a median price of $213,900 on houses. This made people buy houses above and below this range. Other price is average mean price. This price is calculated based on average of all homes sold in a particular area.
There are many factors which may vary in real estate pricing. These variations are on micro and macro level. Few of macro variations include economic strength, mortgage interest rates, federal taxes and demo graphics. One of the biggest factors which is responsible for variations of this real estate pricing is income level of a person. Most of the people have low earning; they can’t afford buying a home with net cash. They go for mortgage loans for buying a house.