watch time: 2:30 mins
In this video, we look at what does median house price mean? & how is the median house price calculated?
So that when you are doing a little bit of research to understand the value of your property before selling, you can do so with confidence!
Median house prices are a statistic that we see everywhere. It’s a bit of a superhero of the property market, you see it on Realestate.com.au, Domain & at the top of just about any suburb profile you see when you are doing a bit of research.
Median house price is a statistic that we see everywhere, but it is not often one that we properly understand.
So, what does median house price mean?
A median house price is not the average value of the market, it is actually the middle value of all properties sold in the market over a period of time. This means that 50% of properties that were sold in the market are worth more than the median house price and 50% are worth less then the median house price.
Here is a little example!
If we look at a market where there are only three properties that have been sold. The first is worth $100,000, the second $200,000 in the third is worth $700,000. In this example the median value of this market is $200,000.
As you can see from the above example, when there are fewer houses on the market, the median value can have the tendency to be more easily skewed. This could be skewed upward if there is a more valuable property sold in the market, or downward if there is a less valuable property sold.
It is a good idea to keep this in mind if your home is in an area like Dundowran, where the housing is significantly less dense than let’s say a suburb like Pialba.
Trends are for more than just fashion and food!
Looking at the changes in median house price over a longer period of time can give you a clearer indication of the value your home in the market. This is the case as you can see a trend rather than looking at one month, which only shows you a single moment in time.
We hope this information makes you feel a little bit more confident about doing your own research into the value of your home before you sell. If you would like some more information from us about the value of your home or what we can do for you to sell your home for more please visit our website at www.thepropertybrand.com.au or pop in for a coffee would love to have a chat!
Thank you for watching and have a great week!
Office location: 391 Lower Mountain Road, Dundowran QLD 4655
Office Number: 07 4128 9970
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