Median prices have dropped in some of Australia's posh neighbourhoods over the past year, but this doesn't necessarily mean it's a buyer's market for those seeking a bargain.
Nor does it mean that all properties in those suburbs have fallen in value.
In fact amongst the myriad property statistics available these days median price is one that sometimes is given too much attention if you ask me.
For instance, in blue-chip Killara on Sydney's upper north shore, "the median price" fell by as much as 16.7% according to Domain, but this just reflects a scarcity of high-end homes hitting the market.
According to Domain, the same situation is observed in Melbourne's Canterbury, where the median price eased by 6.9% to $3,068,500, indicating a shift in the types of properties available.
Despite the median price decreases, the prestige real estate market remains resilient.
Domain highlights that in areas like Killara, the lack of high-end homes for sale is the main factor influencing median prices.
Similarly, in Melbourne, a different mix of properties entering the market is what is impacting median prices.
In Sydney, most of the highest-priced suburbs are experiencing median price declines.
Killara leads the fall, followed by Rose Bay, Vaucluse, and Woollahra.
However, these declines are not indicative of a general drop in property values, but rather a result of a reduced volume of large homes being sold.
In Victoria, only Toorak and Brighton have seen price falls among blue-chip suburbs.
Lack of stock is identified as the main reason for the decline in these areas, according to Domain's data.
Meanwhile, in Perth, the affluent suburb of Dalkeith has experienced a 9% price drop due to different pressures, with houses from the 1980s needing rebuilding.
However, the time-consuming and expensive nature of this process, coupled with changes in fashion and other suburbs offering better views, contributes to the decline in property values.
The bottom line:
A change in the median price does not necessarily mean a change in your property’s value.
While median prices are a useful tool for understanding the price changes of properties that have transacted in a market, a 10% increase does not necessarily mean that your property is worth 10% more.
What it does reflect, however, is an activity in the market
By the way...you may want to read this blog which outline the latest median property prices in Australia’s major cities or Michael Yardney's blog : What does median home price really mean?
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