Auction results are a pretty accurate guide to real house prices as it is a pure supply and demand proposition. When their is bidding involved, the price is most likely to be what the market thinks it is.
So I downloaded the action results data from Realestate.com.au and then analysed it...removing any data that didn't feature a price and separated it into two bedroom, three bedroom and four bedroom houses.(Not too worried about units at the moment)
I then calculated the average price across Sydney and also the 95% confidence interval to try and calculate the minimum and maximum prices for around 95% of the housing stock in Sydney. And these are the results below.
So basically, for the average family to buy the average 3 bedroom house in Sydney, they are paying at least
$1.1 million, most likely over $1.2 million, and could be possibly paying $1.3 million! Bubble time!
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