Chat with us, powered by LiveChatNo mystery about median prices

No mystery about median prices

Median price movements in Melbourne suburbs and major Victorian regional centres are calculated from sales data supplied to the Real Estate Institute of Victoria (REIV) by its member agents.

The sales for each suburb are listed in order from the lowest to the highest value, and the figure in the middle of the listing is the median price. For example, if a suburb records 55 property sales during a quarter, the one that is 28th on the list is the median because it has an equal number of sales – 27 – above and below it.

If there is an even number of sales in the suburb during a quarter, the median is calculated by averaging the two middle prices. The median is used in preference to an average price because analysts consider it provides a more accurate indication of price movement in an area.

Average prices can be skewed by even a relatively small number of sales at either end of the value scale in a suburb. While median prices do not necessarily reflect the change in value of individual properties they provide home owners with an idea of the overall increase or decrease in house prices that have occurred during the previous quarter. Some suburbs included on the list have an asterisk beside them to alert readers that fewer than 30 sales have been recorded in that suburb during the quarter.