So I was asked to speak on ABC South West the other day about the play of the real estate market in this region. REIWA had come out and said that the median price for the South West was $400,000 and the market had declined over the past 12 months.
As I was going to be speaking about the topic I had a look at the data and I was somewhat surprised about how many towns in fact, did not represent the median.
Abbey, in Busselton, had achieved 15.7% capital growth in the past 12 months and its average sale price was $625,000.
Whereas Eaton’s media price was $354,000 and it had achieved a 4.12% capital growth.
As can be seen, these values are at opposing ends of the price scale and it is the volume of sales that therefore affects the average.
For example, Eaton had 125 sales, Australind 266 sales (average $385,000) and Busselton just 73.
Hence it is the high sale of lower priced properties that are dominating the overall median price which is being reported.
It is important that you therefore don’t just take heed of the average price as a guide about where you should live or invest.
It is worth delving deeper – and that is when you find the gems – like Abbey in Busselton.
I believe a property should be a home – but also a worthy investment and hence it makes sense to buy in locations that are going to deliver high and consistent returns. Average won’t give you that surety!
If you are considering investing in an area and are seeking advice about specific property trends then contact the team at PropertyESP (0452 067 117) – we make sense of property.