The Median house price is the sale price of the middle home in a list of sales, where the transactions are listed from lowest to highest price. Therefore, in a list of 11 sales, it would be the sale price of house number 6, which has 5 sales that sold for less and 5 sales that sold for more. On the other hand, the average would be the sum of the prices of all the homes sold divided by the number of homes sold. Note that the median is superior to the average because it is less impacted by a few sales with abnormally high or low prices. It is no strange that the city of Wanneroo is experiencing steady growth. This growth amounts to an increasing number of buyers and investors looking to purchase or rent properties in the area. Undoubtedly, as the economy keeps growing, the area will see more buyers and investors. Knowing and having the median house price in Wanneroo gives prospective buyers and investors a figure to run within their minds about house prices in Wanneroo, WA.
What is the median house price in Wanneroo, WA?
The “median house price” is the middle point of all the houses sold over a set period (monthly, quarterly, etc.) The Median price helps in the pre-planning and planning of funds allocation for Wanneroo. This article will show the median house price in Wanneroo. From December 2021 – November 2022, the median house price in Wanneroo is $500,000. The price started at $350,000 in the year 2017 and made its way up to the current amount. All within a 5-year trend. The median price for units is $430,000 from December 2021 – November 2022.
Factors that influence the median house price in Wanneroo, WA
Several factors influence the median house price in Wanneroo. These factors include:
Economic Conditions
The overall health of the economy goes a long way toward affecting the value of the median house price. This is measured using economic indicators such as GDP, manufacturing activity, the prices of goods, and employment data. Income influences house demand. People will be able to spend more on homes as a result of increased economic growth and rising salaries, which will boost demand and drive up prices. Housing demand is frequently recognized to be income elastic (a luxury good); as salaries rise, a larger percentage of income is spent on housing. Similar to this, declining salaries during a recession will prevent people from purchasing homes, and those who lose their jobs run the risk of falling behind on their mortgage payments and having their homes seized. Also, when unemployment is on the rise, only a few people can afford to purchase a house. The fear of employees dissuades people from entering the property market.
Affordability of Housing
Ever heard the sentence- your income determines your purchasing power? It is true. An income increase means people can afford to spend more on luxury items like brand-new mansions. This can be seen as the demand for housing grows during economic expansions and declines during recessions. Therefore, an increase in household income causes a substantial rise in demand.
Mortgage Availability
Banks’ willingness to lend mortgages to prospective home buyers is a huge factor that determines housing in Australia. The demand for housing increases when banks grant mortgages at higher income multiples.
Renting Cost
Once the cost of renting is high, it pushes people to purchase houses. This is because purchasing seems to be the most cost-effective option.
Interest Rates
These interest rates are coming from the sellers. During a period of high-interest rates, costs increase and most times result in lower demand for buying a house.
Supply
Lack of supply increases the price. Once there’s excess supply, the price decreases. For example, in the City of Wanneroo, there exist over 50,000 houses for sale, and prices will reduce. An oversupply in the market will bring prices down. Supply of housing, Numbers selling, and new builds are major supply factors that affect housing in Australia. When there is a low supply of houses, the house price rises, and vice versa. Also, an increase in the number of home sellers equals an increase in demand. Changes made to the number of new builds will affect nearby existing house prices. The Australian Financial Review, states that the number of new homes built across Australia is expected to drop by 25 per cent by 2023 after the all-time high boom over the 2015-2016 financial year. Median house prices become misleading when a suburb has two independent markets. This is typical in bayside areas where the cost of homes close to the beach is in a certain range and considerably different from those further inland. Median house prices can also be misleading when the type of property sold several years ago, and new residences have now replaced vacant land.
Conclusion
When talking and considering median prices, they are best viewed over periods with the trends monitored. This is better than looking at a month’s statistics. Keep in mind that when thinking about buying or selling a property, the “median price” is merely a starting point and shouldn’t be relied upon exclusively. Because every property is unique, it’s crucial to speak with your real estate professional. Check out other resources related to buying properties in Wanneroo, WA. What Does Under Offer Mean In Real Estate
