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  1. #91
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    May 2004
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    Quote Originally Posted by Perry View Post
    ..... But comparisons using median prices seem to me to be almost deceptive.

    I don't recall it with any great accuracy, but someone once mentioned that - using the median index - if Bill Gates moved to NZ, approximately a million people would immediately be below the poverty line.

    Lies, damned lies, political promises and statistics, eh?
    The Bill Gates story is much more likely to refer to averages, income, wealth. Because median means half are above and half below. And Mr Gates still only counts as one LOL. Not uncommon to remove the outliers, such as the bottom and top few % before calculating average or median.

    I think CoreLogic reports a stratified median for its paying customers (takes account of different types and locations of home).

  2. #92
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    Maths is not and was never my strong point.

    I understood that the median point was the middle price point between the top and the bottom, as you say. But the idea that the mid point is an average makes sense to me, too.

    Therefore, if there were 100 house sales in a month, the median price for that month might be (say) half a million dollars. But if that month's stats included one or two McMansions from Remmers selling for multi-millions, the median [price] point would move up, wouldn't it? If so, more house sales would be below the median price.

    By that measure if Bill Gates or Geoff Bezos or Richard Branson moved to New Zealand they would - by their very presence - plunge 100s of thousands of kiwis into poverty.
    Last edited by Perry; 25-04-2019 at 03:56 PM.
    With all the Draconian new laws for residential rental LLs, perhaps AirBnB would be better? To avoid any hassle in Hawke's Bay, consult Be My Hostess. Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

  3. #93
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    Hi Perry. No, the median is just the price point at which half the sales are above and half below. So in your example 50 are above the median and 50 below.

    But the average sale price would change.

    I don't think 'median' is well understood out there in the real world. Tell people the median house price in say Auckland is $850,000 and that number gets scarily fixed in their head as what it costs to buy there. Yet half of sales are under that amount. Some will be well under.

  4. #94
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    Feb 2013
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    30 percent fall in Mt Albert - do they even read what they write!!!!

    https://www.nzherald.co.nz/business/...HyU2VTGB-588AU

  5. #95
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    Apr 2005
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    Quote Originally Posted by Perry View Post
    Maths is not and was never my strong point.

    I understood that the median point was the middle price point between the top and the bottom, as you say. But the idea that the mid point is an average makes sense to me, too.
    ...

    Yea, I think its the way they taught it at school.
    All those math books with those perfectly spaced grid patterns and all those rulers with those uniform inches or millimeters.
    And all those equations that are oversimplified, so that you can do them in your head.

    In the real world, there are strange uneven gaps between the grid lines , none of the inches or millimeters are evenly spaced ..and the numbers never end up as whole number answers.

    so yea, the training leads to strange expectations and poor judgment.

  6. #96
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    I thought of a good example.

    Say you have a quiet beach town.
    There is a street with ten houses.

    Five on the beach view side, five behind those.
    They are all cheap batches.

    A few x prime ministers and a few broadcasters etc decide to buy four of the beach side properties, they build four McMansions there.
    So the median fifth property is worth 300K ( for arguments sake) while the average price is more like 1 million.

    300K or 1 million?
    Which is the more accurate representation?
    Last edited by McDuck; 02-05-2019 at 06:53 AM.

  7. #97
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    Depends what you are trying to prove.
    Figures don't lie but liars can figure.
    Last edited by Perry; 02-05-2019 at 10:34 AM. Reason: fixed typo

  8. #98
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    Quote Originally Posted by flyernzl View Post
    Depends what you are trying to prove.
    Figures don't lie but liars can figure.
    I sort of look at it the other way.

    All numbers are wrong, well at least in some respect.


    I could get a better picture of the situation by having three numbers.


    Lowest price, highest price and middle price.

    But an even better picture with four numbers, high, low, middle and total.


 

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