Are You Searching the Wrong Way? Rethinking Property Searches Beyond Median Prices
Kent Andrew Lardner
Property Data Consultant | Real Estate Market Research | Market Share Insights and Agent Profiling | Data Visualisation and Dashboards | Empowering Strategic Decisions with Data-Driven Insights.
Introduction to Median House Price Filtering
In the realm of property searching, particularly for affordable homes, the strategy often begins with filtering suburbs according to median house prices. This approach, though prevalent, has its shortcomings. Specifically, it does not account for the distribution of house prices within each suburb, potentially overlooking homes that are affordable but exist in areas with higher overall median prices.
How Median House Prices are Calculated
Median house prices represent the middle value in a list of property prices that has been arranged in order of magnitude. This calculation indicates that exactly half of the homes are priced above this value and the other half below, assuming an odd total number of homes. For an even number, the median is the average of the two central prices. While useful for quick comparisons, this measure can mislead by not showing the breadth of prices within each suburb.
Initial Suburb Selection and Results - Brisbane Case Study
We began by identifying suburbs within a 20 km radius of Brisbane's centre and applying a $700,000 median price cap, which significantly narrowed our search. Here are the detailed results for each suburb under this initial filtering based on houses and villas:
Total properties found initially: 45
Adopting the AREA SEARCH Methodology
To overcome the limitations observed with median-based filtering, we employed the AREA SEARCH method, grouping suburbs by Statistical Area 3 across Australia. This strategy allowed for a broader and more inclusive property search across regions.
Total properties found using AREA SEARCH: 249
Summary of results
This comprehensive analysis highlights the constraints of solely relying on median house price filters. By adopting the AREA SEARCH methodology, we expanded our search parameters, resulting in a significant increase in the number of affordable properties identified across Brisbane. This approach not only offers a broader perspective but also ensures that potential home buyers have access to a more extensive selection of properties within their budget. This method showcases the importance of a nuanced approach in property searches, particularly in diverse urban markets.
How to do an AREA SEARCH for free.
Step 1 - Find the region (SA4) and view 'Search Affordable properties For Free'. Click on the sub-region (SA3) that you wish to use.
Step 2 - Click On the Area Listings search link.
Step 3 - View results.
Visit www.suburbtrends.com