We send out the monthly REBGV stats every month in order to keep you up to date on what is happening in the market? We know that one of the most common questions Vancouverites have is "what is going on with the market?", and the monthly stats are a great resource to answer that question.
With that being said, we also realize that the stats package is filled with many figures and methods of measure and many people people find this overwhelming and difficult to decipher.
We have included a breakdown of what the different types of measurements mean, ways that they can be misinterpreted, and how to best use them to understand the market:
Average, Median and Benchmark price explained
Prices are a great indicator of market behavior
1. When the Average price is notably higher than the Benchmark and Median, a fewer higher priced sales are likely to have skewed the average price high
2.When all three are within range, typical product is selling for expected pricing
3.When the Benchmark price is noticeably higher than the Average and Median, it signifies that lower-end properties are selling. It could also be possible that smaller, fixer-uppers or sellers are just lowering their prices.
Determining which price to use – Average, Median or Benchmark
Average price is the total dollar volume of sales, divided by the number of sales.
Total $s ÷ total sales = average price
It is the price most consumers understand and relate to. However, it can be the most misleading. When high-end properties sell, they skew the average. On the other hand, when there is a low number of sales, the average can be skewed.
The median price is the exact middle price value, if all sales were listed in numeric order from lowest to highest.
½ the sales are higher in value, ½ the sales are lower in value
It is considered less biased than the average price, because it is not as influenced by the prices of the top selling homes. However, the median price can be influenced by a large number of sales close to the mid-range; since that’s where the median is picked up.
Benchmark Price (as determined by the Housing Price Index)
The benchmark price is a predicted sale price of a general property in a given area, based on ‘typical’ criteria common to homes in that area. It represents a typical sale and does not take into account the high-end and low end properties.
The benchmark descriptions for Kitsilano homes:
DETACHED HOUSE: 3317 sq.ft. lot, 2 bedrooms up, 1 bedroom down, 2 full bathrooms, 1 covered parking, forced air heating, finished basement, 50 years old
TOWNHOUSE: 600 sf, 2 bedrooms, 2 full bathrooms, 1 covered parking, underground garage, electric baseboard heating, 14 years old
APARTMENT: 448 sf, 1 bedroom, 1 bathroom, 1 covered parking, underground garage, electric baseboard heating, 15 years old
*data from Benchmark Attribute Report, Real Estate Board of Greater Vancouver