Posted to Waverley Leader (26/12/12) on 27/12/2012 at 5:47 PM
Commenting on "Wheelers Hill 'safe' suburb"
http://waverley-leader.whereilive.com.au/news/story/wheelers-hill-a-safe-suburb/
It is important to understand the meaning of median price; it is NOT the average price of all the sold properties, which is calculated by adding the prices of all the sold properties and divided by the number of properties sold.
The median price is the "middle price", which requires little or no calculation. If you line up all the values of sold properties from the smallest to the largest, the middle number gives the median price. However, if the list of numbers is even, then there is not one exactly in the middle; you will have to take the two numbers closest to the middle, add the values together and then divide by 2.
The property values below the median price can be very much less, and the values above the median price can be sky-rocketed high. In short, you may overpay a property below the median price, or underestimate your property worth if it is above the median price.
Investing large sum of your hard-earn money requires doing a substantial amount of homework including attending auctions and keeping track of real estate activities in the targeted area. Wheelers Hill is no exception and so do take note and take care.
