{"id":14696,"date":"2017-11-16T01:00:19","date_gmt":"2017-11-15T14:00:19","guid":{"rendered":"http:\/\/www.realestatetalk.com.au\/?p=14696"},"modified":"2017-11-16T01:00:19","modified_gmt":"2017-11-15T14:00:19","slug":"the-2-metrics-to-measure-value-kylie-davis","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtytalk\/the-2-metrics-to-measure-value-kylie-davis\/","title":{"rendered":"The 2 metrics to measure value \u2013 Kylie Davis"},"content":{"rendered":"<p>How much are the properties worth in your suburb? And if you are thinking of selling, how much will your place sell for?\u00a0 There are two major metrics that property and financial professionals look at to answer this question.\u00a0 <strong>Kylie Davis<\/strong> from Core Logic explains what they are and how they are calculated.<br \/>\n<strong>Transcript:<\/strong><br \/>\n<strong>Kevin:\u00a0\u00a0<\/strong>If you\u2019re thinking of selling a property or if you\u2019re thinking of buying a property, one of the things that you are going to have to know about is price in details. How much is your property worth, or how much is the property worth that you\u2019re going to be buying?<br \/>\nThere are two major metrics that property and financial professionals look at to answer this question. To help us understand what they are, I am joined by Kylie Davis. Kylie is the head of content and property services marketing at CoreLogic.<br \/>\nKylie, what are those two metrics, and could you just explain their importance to us?<br \/>\n<strong>Kylie:\u00a0\u00a0<\/strong>There are two key metrics, Kevin. The first one is median sales price, and that\u2019s one that we have heard for a very long time about what the market is doing \u2013 what was the median price of sales in a suburb or in a local market? The second one \u2013 which is a little bit more modern \u2013 is median value.<br \/>\nIt\u2019s really about the detail and how those two numbers are compiled, but the short answer is that median sales price talks about the middle price of what\u2019s selling at the moment, but median value talks about the value of property within the suburb as a whole \u2013 the middle value of all of the houses in the suburb.<br \/>\n<strong>Kevin:\u00a0\u00a0<\/strong>We should really look in some detail of both of those, because there\u2019s a lot of confusion around medians, what they really mean. People just think that if the median sale price goes up, then values have gone up. But it doesn\u2019t quite work that way. It\u2019s not that simple, is it, Kylie?<br \/>\n<strong>Kylie:\u00a0\u00a0<\/strong>No, it doesn\u2019t. Median sales price is really the middle value of what is selling at the moment, and it\u2019s a number that\u2019s collected only off properties that have sold. So, if you live in a suburb of, say, 3000 houses and 10% of that market sell that year \u2013 so 300 houses; that\u2019s a pretty high level, but let\u2019s stick with it \u2013 then it\u2019s the middle value. It\u2019s what property number 150 or 151 sells at that tells you what the middle sales price was.<br \/>\nSo, if you\u2019re in a suburb that has a lot of three-bedroom homes but then there\u2019s a new development that goes on the market that\u2019s full of four-bedroom homes that are a little bit more specced up, and those highly specced properties are selling, they will push the median sales price up because they\u2019re selling for a higher number and they\u2019re putting volume into the sales in the market. Or if at the other end, you have maybe some two-bedroom properties that are selling at the lower end of the market, they\u2019ll pull the median sales price down.<br \/>\nMedian sales price can move a lot for different reasons. It can move because the sales price of properties is going up or down, but it can also move because the types of properties selling are different to what typically would sell in that market. And it\u2019s also based off the small proportion of what\u2019s selling in a suburb.<br \/>\n<strong>Kevin:\u00a0\u00a0<\/strong>Because if you\u2019re looking at a suburb where there\u2019s a high number of renovations happening, this is really going to impact that median sale price, isn\u2019t it?<br \/>\n<strong>Kylie:\u00a0\u00a0<\/strong>Yes. So, you might see a median sales price for a lot of unrenovated properties but then the renovated properties will start to come on to the market and you\u2019re comparing them to what has been unrenovated, and it gets a bit out. So, you might turn up to an auction thinking that you\u2019ve done your research and you know what a property is going to sell for, but you\u2019ve based it on a median sales price that\u2019s about unrenovated properties.<br \/>\nMedian value is a more useful number in understanding what the genuine value of property is within a suburb, because that\u2019s calculated \u2013 often on a daily basis; we certainly calculate it on a daily basis at CoreLogic \u2013 based on every single property across Australia. So, every suburb is based off of a median value.<br \/>\nThat\u2019s a more genuine reflection of whether there\u2019s growth happening or a decline happening in a suburb. But it\u2019s not a great tool if you\u2019re wanting to buy, because it\u2019s only going to give you a price guide, really. And the guide of it is that if there\u2019s not a lot of property on the market at the time and you turn up to the auction or to the sale and there\u2019s a lot of competition for that property, then just because the median value of the suburb is a certain amount doesn\u2019t mean that the property is going to sell for that.<br \/>\n<strong>Kevin:\u00a0\u00a0<\/strong>Are there reports available that will demonstrate this to us, the median value and the median sales price?<br \/>\n<strong>Kylie:\u00a0\u00a0<\/strong>Yes. A property report will basically extrapolate a value for the property that you\u2019re looking at based off the median value of the suburb and comparing that particular property to a host of other similar properties in the area to come up with an estimate of what the value is.<br \/>\nMedian sales prices are usually quoted by agents in the current market appraisals that they give you. So, the combination of your own research looking at what the median value is plus the research that an agent gives you about a property will help you understand what\u2019s going on in terms of supply and demand and where prices are going.<br \/>\n<strong>Kevin:\u00a0\u00a0<\/strong>Kylie Davis is head of content and property services marketing at CoreLogic and also runs the CoreLogic Reports Store. She knows what she\u2019s talking about when it comes to reports, as you can hear.<br \/>\nKylie, great talking to you. We\u2019ll catch you again soon. Thank you.<br \/>\n<strong>Kylie:\u00a0\u00a0<\/strong>Thanks, Kevin.<br \/>\n&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>How much are the properties worth in your suburb? And if you are thinking of selling, how much will your place sell for?\u00a0 There are two major metrics that property and financial professionals look at to answer this question.\u00a0 Kylie Davis from Core Logic explains&#8230;<\/p>\n","protected":false},"author":176692471,"featured_media":14697,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[32,34,10,11,13,22,25],"tags":[101],"class_list":["post-14696","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buying-a-property-topic","category-finance-topic","category-kevin-turner-sponsored-channels","category-kevin-update","category-latest-story","category-research-topic","category-sponsored-channels","tag-podcast"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The 2 metrics to measure value \u2013 Kylie Davis - Realty Talk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/channels.realty.com.au\/realtytalk\/the-2-metrics-to-measure-value-kylie-davis\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The 2 metrics to measure value \u2013 Kylie Davis - Realty Talk\" \/>\n<meta property=\"og:description\" content=\"How much are the properties worth in your suburb? And if you are thinking of selling, how much will your place sell for?\u00a0 There are two major metrics that property and financial professionals look at to answer this question.\u00a0 Kylie Davis from Core Logic explains...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/channels.realty.com.au\/realtytalk\/the-2-metrics-to-measure-value-kylie-davis\/\" \/>\n<meta property=\"og:site_name\" content=\"Realty Talk\" \/>\n<meta property=\"article:published_time\" content=\"2017-11-15T14:00:19+00:00\" \/>\n<meta name=\"author\" content=\"rolanrush\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rolanrush\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/the-2-metrics-to-measure-value-kylie-davis\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/the-2-metrics-to-measure-value-kylie-davis\\\/\"},\"author\":{\"name\":\"rolanrush\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#\\\/schema\\\/person\\\/384a57ac9e52cb9bf19896cb15eaa52d\"},\"headline\":\"The 2 metrics to measure value \u2013 Kylie Davis\",\"datePublished\":\"2017-11-15T14:00:19+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/the-2-metrics-to-measure-value-kylie-davis\\\/\"},\"wordCount\":1071,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/the-2-metrics-to-measure-value-kylie-davis\\\/#primaryimage\"},\"thumbnailUrl\":\"\",\"keywords\":[\"podcast\"],\"articleSection\":[\"Buying a property\",\"Finance\",\"Kevin Turner\",\"Kevin's Update\",\"Latest Stories\",\"Research\",\"Sponsored Channels\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/the-2-metrics-to-measure-value-kylie-davis\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/the-2-metrics-to-measure-value-kylie-davis\\\/\",\"url\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/the-2-metrics-to-measure-value-kylie-davis\\\/\",\"name\":\"The 2 metrics to measure value \u2013 Kylie Davis - Realty Talk\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/the-2-metrics-to-measure-value-kylie-davis\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/the-2-metrics-to-measure-value-kylie-davis\\\/#primaryimage\"},\"thumbnailUrl\":\"\",\"datePublished\":\"2017-11-15T14:00:19+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#\\\/schema\\\/person\\\/384a57ac9e52cb9bf19896cb15eaa52d\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/the-2-metrics-to-measure-value-kylie-davis\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/the-2-metrics-to-measure-value-kylie-davis\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/the-2-metrics-to-measure-value-kylie-davis\\\/#primaryimage\",\"url\":\"\",\"contentUrl\":\"\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/the-2-metrics-to-measure-value-kylie-davis\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"The 2 metrics to measure value \u2013 Kylie Davis\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#website\",\"url\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/\",\"name\":\"Realty Talk\",\"description\":\"Your Trusted Voice For Property Investing. 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