In this video, Alex Fedoseev, co-founder of HtAG Analytics, explains the concept of typical price in real estate and how it differs from median price. [00:00:00] Introduction[00:01:00] What is Typical Price?[00:02:00] Refresher on Median Prices[00:03:00] Issues with Median Prices[00:04:00] Median Price and Composition of Sales[00:05:00] Introducing the Typical Price[00:06:00] Methodology of Typical Price[00:07:00] Comparing Data … Read more
Unlike with other goods and services that have a fixed price per unit, each sold property is always priced differently.
Furthermore, there are no transaction prices every month/quarter on the same property. Instead, there are infrequent transactions on diverse properties.
This results in noisy and unreliable data if we chose to rely on simplistic indices such as Median Price.
In this article we explore the solution to this problem and describe the methodologies used.
Median Price is one of the most commonly reported property market metrics. All major media outlets and data providers use it to highlight real estate price levels in capital city and regional markets. In this article we will explore whether this metric is a reliable indicator to perform data-driven market research and assess suburbs for investment opportunities…