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Sensationalism - Median Property Prices Down in the Cove
InformationmpicklesFri, 30/08/2019 - 6:57am
Property Prices Down in North Arm Cove
A recent report released by Real Estate Institute of NSW found that North Arm Cove was one of the worst performing suburbs for property investment in NSW. The median price fell 41% in the first half of 2019.
Residents however should be careful in declaring that house prices in the Cove are dropping based on this data. Median is not the average, it is the mid point of the data between the highest and lowest prices for property sold in the last 6 months.The median fell compared to the previous six months and there are a number of factors influencing this data. Such as there were more properties sold in the lower range for example under $500000 than in the higher range over $500,000.
Does this data mean the property prices are falling in the Cove?
I asked Ivy Stevenson – Director Century 21 and Cove Resident for advice and she provides more clarification.
"Whenever bodies such as the REI publish such figures they do so on the premise that the area and the data they are collecting is much the same as anywhere else. Therefore they ask the computer to look over a particular period and add up all the sales in the suburb (North Arm Cove) and spit out the average without really looking at the area and understanding the subtlety that may apply to a particular area.
North Arm Cove has one particular anomoly that will always skew figures particularly given the relative number of units that sell. It is a small area and as such the ‘average’ or median can be widely effected by one large or conversely a couple of smaller dollar sales. The anomaly referred to is the sales of Non urban lots in the area. Non urban lots seem to sell in fits and starts. In our office we can go months with little or no activity around these lots; and then like the last 4-6 months a surge in interest leads to lots of inquiry and a spike in sales. So my assertion would be that the first half of 2019 probably had a higher than normal sale rate of non urbans with a few other sales of non waterfronts and land being compared against another time frame where there was a number of higher unit cost properties sell such as waterfronts coupled with few if any non urbans being sold.
I can certainly state that sales of homes in the village area of North Arm Cove have performed well over the last 12 months and certainly not deteriorated to the extent suggested in this so called research. Always remember that with the low numbers of residences in the suburb of North Arm Cove median prices will always be an inaccurate barometer."