“Average” house prices mean little.

I have written a number of times on the topic of statistics, median price, and average costs of NZ housing that are shown in numerous articles on the internet.

Today I write regarding average pricing.

What is average? According to one site, the “average” price of a 5br home nationwide is at $1,105,000.

Does that really prove anything?

I suppose it means somewhere they are pretty pricey.

But let’s take a plain and simple example of a mattress.

1 shop is selling at $100, another at $150,

another at $200 and another at $1900

Adding all these prices up we get $2,350

Dividing that by 4 to get an average means we believe the average price of a mattress is

$2350 divided by 4 = around $587.

But that is not true. Not one of the 4 shops is selling at that price, 1 is way above and 3 are way below..

it is the same with houses. Yes, certainly there are a lot of 5 and more bedroom homes at $1m or more, but there are also many much less.

As at the 26 October 2019 I found these, (and there are many more) on Trademe.

I need to make you aware; I have not seen these homes, and have no idea of their condition or location. Should any interest you, by putting in the address you should be able to find them.

I am simply showing that “average” prices can be misleading.

At the bottom of our country

Invercargill. Dipton St , 5 br. 2 bathrooms on a massive 1115sqm section, this is over ¼ acre. Asking price, Just $395,000

Dee Street, 5 br. 2 bathrooms, on a large 1421sqm section (not far off 1/3rd of an acre asking price $595

Filleul Street, 6br, 2 bathrooms, over1012 sqm section, ¼ acre,

Asking price $669,000

Kakapo Street, Gore 5 br. 2 bathrooms 708 sqm section. $420,000

Coming up to the top of the country,

On to Hawkes Bay,

Elegant country Lifestyle on around 5 acres, 5 br and 2 bathrooms with gorgeous sea views Asking price $750,000

Mahia, Wairoa, 6 br and 2 bathrooms (2 dwellings) spread over 3 separate titles. This would be a dream for the whitebait and country living lover. Situated on 1 and a half acres with a double garage.

Asking price $390,000

Up to the Far North

Just 6 km from the vibrant town of Kaitaia you can buy yourself a great 5 br home, 2 bathrooms on near 10 acres (4 hct) of land for $790,00 less than the price of a 3br home on a small section in an average area of Auckland.

Berghan Rd, Coopers Beach, 5 br 2 bathrooms, section 640 sq m $529,000

West Coast Road, Awanui Close to 90 mile beach, see it from your lounge window, 5 br, 2 bathrooms on a massive 1700 sq m section. Asking price $499,000

Otaha Rd, Kerikeri, 5 br 2 bathrooms 2 acres of land, asking price $649,000

And so the list goes on. Are most 5 or 6 bedroom homes over 1m? Certainly not, there are a lot at the higher end of prestige and elegance, but for those of us looking for a family home for our growing brood certainly you can find a home to suit.

Many other areas of the country have 5 or more bedroom homes under $1 m so search yourself for the area you would like to buy in and see what you discover.

If you are thinking of selling our property, contact us. We are not real estate agents, we are Referral Agents a growing trend for home owners to seek the best agent they can to market their property. We do this for you, totally free of charge, and what’s more we give you a cash reward when your property sells. Find out how by ringing us on toll free 0800 355655 and also visit our website www.topnotchagents.co.nz

Hope you enjoyed reading this article.