If you are researching the property market, you will know the terms ‘median’ and ‘average’ in relation to sales prices. Many people think they are the same thing and use the terms interchangeably, but they are actually quite different.
The median house price in a suburb is the midway point of all the houses sold over a set period. For example, if 101 houses sold in Kingscliff during the year, the median house price would be the one in the middle – eg: 50 house prices above it and 50 house prices below it.
On the other hand, the average price would be determined by adding together all the sold prices of those 101 houses, then dividing that figure by 101 (the number of sales).
The median price is used more widely because it provides a more accurate indicator of the market. It reflects the sample size being used and is less likely to be skewed by very high or very low sales.
Of course, median prices are not a perfect science either – a property can be well above or below the median for a number of reasons, including block size, dwelling size, water views, location etc.
The median price is only one factor that sellers and buyers should consider when researching the market. All properties are different so it is important to talk to an experienced agent to get all the facts.
Our agents are highly experienced and knowledgeable about our local area, having been operating in the region since the original development of Salt Village. Please come and see us if you are thinking of buying or selling in the Kingscliff / Casuarina region – we will put you on the path to property success!