Renovated charmer will impress
WHAT is the difference between a median and an average price and why on earth do you need to care, is a question I’m often asked.
Isn’t it all lies and damned statistics, anyway?
Well, no. The median house price is defined as the middle figure, so if an area has sold a certain number of homes, it is the middle price result that has been recorded.
Medians are not to be confused with the average – this is the total value of the properties sold, divided by the number of sales.
Despite using different formulas there can be little disparity.
But as a rule, the Australian property market loves medians.
A median price is always less susceptible to skewing than an average, according to my good friends at RP Data.
Imagine an area that typically sells 13 homes a month in the $500,000 range.
The cheapest might sell for $489,000 and then there is a cluster of homes across the $500,000 range, while the last two sell for, say, $625,000 and $650,000.
The median price is based on the price of the ‘‘middle’’ property.
So the price achieved by property number seven – let’s say it is $540,000 – is regarded as the median price because this is a statistically accurate reflection of the price of stock in this market.
If a new housing estate in the area sells with another 10 homes at the top end of the market in the same month for around $750,000 each, then this will change the median.
Now the median (middle) price is the price achieved for property number 12, and this price was $625,000.
Suddenly, in the space of a month, the median has jumped from $540,000 to $625,000.
But does that mean that all property in that suburb has now jumped equally in value? Sadly not.
Taken over a year or longer, median prices can be a fairly accurate overview of typical activity within a suburb.
If you are buying or selling, it is very important to take note of the median prices in your area.
They can guide you on the marketability of your home if you are selling, AUCTIONof the week is a beautifully renovated 1950s home in popular West Hobart.
The property, at 15 Rossendell Ave, will go under thehammeron Saturday at 11am.
‘‘West Hobart is perceived by manyto be the ideal location to invest or reside,’’ says consultant Lynne Page.
‘‘It has interesting streetscapes with an eclectic mix of architectural styles and the presence of a lovely sense of community spirit, with well-patronised clusters of village stores and cafes providing a busy hub.’’
Afantastic opportunity awaits to secure a property with promise and great potential to add value.
Constructed of solid brick in the 1950s, the home’s good, clean lines, with a hint of the art deco style in the curved wall of the facade, ceiling cornices and stucco rendering will please devotees of the post-war era.
Fresh paintwork, polished floorboards and new carpet, combined with a contemporary kitchen and walk-in pantry, enhances this two to three-bedroom abode.
Abold, retro look for the bathroom, which includes a separate shower and bathtub, makes a statement.
The living room is adjacent to the kitchen, which overlooks an expansive, low-maintenance garden. and give you insights into competition from other buyers if you are buying.
As an investor, a median tells you how easy it will be to sell in the future. How? I hear you ask.
Well, in most instances if you sell a property in an area where the price is set around or below the median house price, you are likely to find that
Should you wish to extend the existing accommodation and/or living areas, there is potential for new, internal stair access down to an already enclosed area/studio, complete with plumbing in place and a second toilet under the house.
The property will be open for inspection tomorrow from 12.30-1pm. demand for your home will be strong.
As such, you are more likely to sell quicker and arguably the buyer will gain a property where capital growth could be stronger.
Conversely, some will tell you to buy above the median. Here there is less supply, which means that you should receive better returns.
This is a higher-risk strategy.
THEHomeLoan Shop and Mortgage Solutions Tasmania are excited to announce they have opened an additional office on the Eastern Shore at 2/30 Bayfield St, Rosny Park.
Past and present clients are welcome to drop by and say hello
For buyers, the hint here is that if you are looking to buy a home that is priced under the suburb median, expect more competition.
If you are priced above the median, realise that you might find it harder to lure a buyer.
Investors looking for high yields and low risk should be seeking properties below the median. and discuss any finance matters, plus there is also a mobile service for those unable to make it into either the Rosny or Hobart office.
Meetings in the city are by appointment only.
Business contact details remain the same – call on 6230 6333, fax on 6234 7077, or email info@homeloanshop.com.au
Median price information on every suburb is easily found online.
Check out myrpdata.com, realestate.com.au or the Commonwealth Bank property app.