Hi Everyone,
I had a look at the January 2008 editions of the two leading property investment magazines. At the back they each have the current sales/rental data for all suburbs across the country. In one it had the median house price for my suburb as $615K to August 2007 and the source was RP Data. In the other magazine it had the median house price for my suburb as $546K with no end date and the source was Home Price Guide.
I'm assuming both sources would be using the same available raw data so does anyone know why there would be such a difference in the median price?
Thanks.
Thats the thing with stats.
Everyone has a different measuring stick. Some list all sales, some don't have access to all the results, it depends on the "window" of time they use etc etc.
I don't pay much attention to them. Makes no difference to a successful investment.
Use them as a rough guide, and do your own research to find out more.
I look at more relevent factors such as previous sales, rent return, age of property, add value potential, location, arra rental demand, population movement in the area.
Talk to local agents, look at the r/e websites like realestate.com and domain for sold properties for comparables to the properties you are watching, rents on the same, drive around the area and watch the r/e office windows
If there is a low volume of sales for a period (eg 5 sales in 3 months), often they take into account the previous periods sales also and average the previous period as well. So in effect they ave 6 months, which in a rising market is very inacurate. Is the suburb you are referring to a "small" suburb, or a popular suburb with a small turnover? If so, you need to do your own research carefully. I consider it an oppurtunity to pick up a bargain. L
just make sure you do not compare one month with one source and another month with a different source as the growth figures will be inaccurate between the months due to the differences between sources.
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