$7,000 in 1960 to $658,608 in 2015, Australian Median House prices are not average
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Australian Median House Prices
Year - Prices
1960 - $7,000
1980 - $44,800
1990 - $110,600
2000 - $195,700
2005 - $334,100
2010 - $481,300
2015 - $658,608
But what’s the difference between Average and Median House Prices?
Most property stalwarts quoting residential property use the regular terms of “Average” or “Median” prices.
Some people think that these terms are much of the same but they are different and it’s important to understand why.
The best way to explain the difference between average price and median price is by looking at the following example.
Sales Prices
$520,000
$525,000
$535,000
$545,000
$555,000
$560,000
$565,000
$570,000
$695,000
$765,000
$995,000
Median Sales Price
The median price is the sales price that has half the sales above it and half the sales below it, so the Median (middle) value is property 6 which is $560,000
Average Sale Price
The average (mean) price is calculated by adding up all of the sales and dividing them by the number of sales.
The above sale prices total is $6,830,000 we then divide the total by the 11 sales which gives us the average of $620,909
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