The first step to determining the average house price is to look at the MLS listings in your area and look through them manually. After looking at several properties you will be able to get a idea of how much the average price would be and how many houses there are in that price range. You can also see that there will be many houses that have been on the market for a long time and if no one is buying them then they are perhaps too expensive and can be considered outliers.
Be sure to check out the house listings of other areas such as nearby cities and even far-away states to get an even better look at what the average might be nationally. You will find that there are areas with extremely inexpensive houses and other locations with very pricey homes. Often times the average house price is a multiple of the average salary in the area, so multiply your salary by four for a nice affordable average house price.
Your salary is a good indication on how much house you can afford but there are other things to take into consideration such as your expenses and total liabilities as well as any savings that you might want to accumulate. Use our How much house can I afford? calculator to easily determine a quick estimate of a house price you can afford. Taking a look at the average household income in your area and use the general rule of thumb of multiplying by four and you will get the average house price.