What a load of rubbish

[Bigtone]

http://www.heraldsun.com.au/ipad/rate-reprieve-tipped-for-homeowners/story-fn6bfmgc-1226095620378

The figures quoted in this article are so misleading and highlight just how ridiculous short term property stats.

There is no way in the world a Brighton home is worth 18% more than it was 3 month ago. People believe this rubbish

It has Brighton East down 16% the neighboring suburb. So three months ago 2 houses worth $1m each one street away from each another one is suddenly worth $1.18m and the other $940k in 3 months?

They should not be allowed to publish this crap. As for the stats on mount eliza you got to be kidding.

 

[devo76]

For a few months. A certain suburb to the north of me constantly appeared in property magazine stats as a top CG performer.
The thing is the suburb was 99% recently reclaimed swamp land. it was completely misleading. A couple of fibro shacks turned into new mansions. No wonder the growth looked incredible.

 

[Aaron_C]

which is why I never look at median figures....anyone who does is a darn fool

 

[Bigtone]

which is why I never look at median figures....anyone who does is a darn fool

yes but they get reported as fact, tonights news they have a story and report it as an absolute truth

 

[BayView]

which is why I never look at median figures....anyone who does is a darn fool

Been sayin' this since I joined this forum.

That Mt.Eliza stat - prolly just a few $2 mill+ sales clse together, with nothin' else happening every other price ranges, maybe a couple of very bottom end sales to match the top end.

Voila!

Increase in median.

 

[travelbug]

I saw an article which stated house prices were down 30%.
I looked up one of the houses.

Can't remember exact figures but it amounted to this- original price ($299K) then a new price of (offers between $210K - 270K), So they reported 30% drop.

Yeah only IF it sold for $210K (which it didn't).

 

[Player]

Median media mania............

I've said my piece on medians, here:

http://www.somersoft.com/forums/showpost.php?p=756380&postcount=9

Yearly data and three, five and 10 year trends are of more interest and use in doing macro DD.

 

[Aaron_C]

Just put it out of your mind haha and you'll be less angry

 

[pieman]

goes up and goes down, has come off in Bwwigghton of late. Still very exe, had a look at this dump yesterday
http://www.domain.com.au/Property/For-Sale/House/VIC/Brighton/?adid=2009087307
and it was land value only. 200+ psqft is alot for this land on this street but will probably sell.
Aint no bargains here

 

[Aaron_C]

Good properties never face steep discounts. That's why they're good properties.

 

[mech81]

Just curious, I know that medians are a terrible in knowing what the suburb market is like. So what indicators would you use? I've always struggled with this.

 

[Aaron_C]

Well mech81 - you would pick the areas that you would like to invest in, and then research research research! Go to inspections and auctions, check auction results, talk to neighbours, talk to agents and see whether the area is good for you or not (price-wise).

I would say it is impossible to create an overraching statistic for properties because even a similar property only 10m away can have a significantly different value due to qualitative factors not reflected in numbers.

 

[Melbournian]

exactly right.

numbers and stats may form part the decision buying factor but they're always other factors that play into the figures. going to inspections and auctions are always a good start. Auctions really tell you what kind of people look for the properties. If you go to the middle park and albert park auctions - u see all kind of celebrities or flashy people in porsches and ferraris sometimes coming. They obviously are dressed well and want to see houses with the miele appliances and the higher end.

This would be different in frankston as well as inner city units (whereby a whole bunch of overseas parents looking with their kids). Demographics, location play a key role to this. You need an understanding of the suburb to know how the suburb will move.

 

[Aaron_C]

It really irks me when people talk about property with one big brush either positively or negatively - nothing is further from the truth.

 

[Ms Jade]

As for the stats on mount eliza you got to be kidding.

Come on Bigtone; I can definitely tell you that my house went up 22% in the last few months. After all, I did just paint the bathrooms!

Mt Eliza is about the worst suburb to watch with median prices. One qtr it's wildly up & then next it's down. This is because of the extreme price disparity. It has been interesting however, given the apparent cooling of the top end, that quite a few $2m+ homes have sold in the last couple of months, including one over $6m. Just wait until next qtr's headlines: "Mount Eliza crashes 23% in 3 months!"
Then I'll just have to move on to painting the laundry, I guess..

 

[Melbournian]

i did live in mt eliza at one stage.

I rank it as probably the most boring place to live.

However many rich retirees move in there. and some pay major dollars for high end properties which puts the stats up.

 

[Aaron_C]

The price gap between a property with sea views and one without views is just huge...