The average house price in 2007 was 5% lower than in 2006 The average house price in 2008 was 5% greater than in 2007 Explain why the average price of house in 2008 Is not the same as the average house price in 2006

Given that the average house price in 2007 was 5% lower than in 2006, while the average house price in 2008 was 5% greater than in 2007, to explain why the average price of house in 2008 is not the same as the average house price in 2006 the following logical reasoning must be carried out:

If, for example, in 2006 the median home price was $ 100,000, a 5% drop in 2007 would bring the median price to $ 95,000. In turn, if this price were to increase by 5% for 2008, said value would rise to $ 99,750. This is so because the 5% is calculated based on a smaller number, with which the rise will be, therefore, also smaller.

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