Understading QV figures
The regular readers of this column will know that I like to talk about the property market sales statistics. I believe as a property professional that it is vital to know as much as I can about my market, its changes, fluctuations and patterns etc. I mention this because recently I have noticed a disparity between the Real Estate Institute figures and QVs figures regarding average/median selling prices which generally come out at the same time every month. The difference between them last month was fairly significant, the REINZ stats showed a median selling price of $285,000 while QV showed an average property selling at $320,000.
So why the difference? Essentially because the way that the figures are worked out are hugely different. The REINZ figures are worked by totalling the dollar value of all sales and dividing the number of sales into it. For example, in September there were 47 sales in Upper Hutt with a combined dollar value of $13.95 million. Divide 47 into 13.95 million should equal around $285,000. (I’m really wishing I had a calculator at the time of writing this)
The QV figures are worked out by listing the sales in price order and taking the middle sale as an average, in this case the 24th property on the list which sold for $322,000.
Is this in any way important? Probably not. These figures take a median or average price but every home should be appraised independently to gauge their approximate market value so if you have any real estate enquiries or would like a free market appraisal, please contact me via email, email@example.com, send me your contact details by clicking here or call me on 528 2422.