The REIV median sale price for a house in Melbourne is $410,000, but what exactly does median price mean?
The median is the middle price in a range of property sales.
In other words, if you have a list of sold properties arranged in order from most affordable to most expensive, the median price is the centre point of that list. This should not be confused with average price. That is calculated by adding the total value of sales from a list and then dividing the answer by the number of properties sold. That's a different figure altogether.
The median price is used as a measurement by REIV because it's a better representation of changes in property values than an average. It's not affected as much by a handful of very high or very low-priced sales, as an average figure would be.
When it comes to assessing a likely price for your property, the trend in the median is only one factor to consider.
The other important factor is the prices of comparable properties. This is public information and should be discussed with your REIV member agent.
Your agent should also be able to show you REIV research showing recent property sales that may not be accessible through public databases.
If you want to know where your home or investment sits within the median, contact your local REIV member agent and ask them to provide you with an appraisal.
