In the past few week’s newsletters we have reported on price changes in the Mount Coolum area (and surrounds) over time periods, and this data always refers to the median price. What does this mean, and how does it affect the value of your property?
Defined: The median sale price is the middle sales price in a list of sales, over a given period, in a given area, arranged in order from lowest to highest. It is more reliable that the ‘average’ sale price, as the average can be skewed by a few exceptionally high or low sales figures; therefore, not as reflective a snapshot.
It is important to remember that a median price increase or decrease doesn’t necessarily mean that your particular property has changed in value by that same percentage increment. For example, a moderately priced home in a market where there has been a surge in the sale of prestige homes may not have gone up in value, despite the median price for your area rising. This also works if there is a median price fall – it might be at the cheaper end of the market; therefore, it may not impact on the price of your home.
Movements in median prices need to be looked at carefully, and within the context of the location. Some suburbs are extremely large and diverse in the types, ages, and styles of homes, and the median price is not necessarily an accurate gauge of an individual property’s value within this context.
Summary: Median prices are a useful component in creating a picture around value in a particular area; however, they shouldn’t be used in isolation, and it must be remembered it’s probably best used as an indication of the composition of sales, as opposed to changing property values. It is important to look at all property statistics over a longer rather than shorter term, to get a more accurate picture. There are many influencers and drivers that can change over time which may impact on the values in a region.
Wright Place Mount Coolum Website Launch: This week we have launched our company website, click here to view. Any feedback is welcome, and we encourage you keep coming back and visiting our site regularly to keep up to date with property news in Mount Coolum.