Why do property an analysts use median house price?
Median house price explained
There are technical reasons why the median provides a more accurate picture of what is happening to the prices of houses rather than the average.
As an example, assume there are 11 houses sold in a month with a price range of $200,000 to $300,000 and an average price of $250,000.
Now replace one of those houses with a house that sold for $1 million. The average is now $318,182, even though 10 of the 11 houses for the month sold for less than this value.
The median would be the price of the middle house sold in the range (in this case the sixth house), which more accurately reflects what the majority of the houses sold for.
REINZ uses medians to provide a more accurate measure of the mid-point of house prices that reflects what most people are going to be buying and selling houses for.
Poll: Are our Kiwi summer holidays helping us recharge, or holding the economy back? ☀️🥝
There’s growing debate about whether New Zealand’s extended Christmas break (and the slowdown that comes with it) affects productivity.
Tracy Watkins has weighed in ... now it’s your turn. What’s your take? 🤔
-
73.4% We work hard, we deserve a break!
-
15.8% Hmm, maybe?
-
10.8% Yes!
Brain Teaser of the Day 🧠✨ Can You Solve It? 🤔💬
How many balls of string does it take to reach the moon?
(Peter from Carterton kindly provided this head-scratcher ... thanks, Peter!)
Do you think you know the answer? Simply 'Like' this post and we'll post the answer in the comments below at 2pm on the day!
Want to stop seeing these in your newsfeed? No worries! Simply head here and click once on the Following button.
Celebrate in Style: Craft Your Own Decor with Testpots
Create handcrafted celebrations using Resene testpots. Find out how to create your own with these easy step by step instructions.
Loading…
