The TV aims to represent the typical value of properties in a suburb (houses/units). It is based on recent sales data.
The TV calculation looks back in time until there are enough sales for a reasonably reliable estimate of what "typical" properties have sold for. Half a dozen sales are far too few. So, for thinly traded markets, this might mean going back more than just a few months. But the absolute upper limit is set to 12 months.
The sales are analysed to come up with a recent trend in movement. Then based on that trend, an estimate is arrived at for the value of properties at the end of the month of interest.
The TV is designed to provide the most accurate up to date estimate for property values. It can be used to find suburbs with the most chance of having property suiting an investor's budget.
There are delays in recording, calculation and publication of sales data. In fast-moving markets, thinly traded markets, or non-homogenous markets, the TV may not precisely match your expectations of "typical value".
One problem the TV may have in some markets with a wide variety of different property types, is "volatility". This is seen on a chart where the TV bounces up and down from month to month. This is not a reflection of changes in capital growth rates. Instead, it is a reflection of how varied the type of properties are that are selling.
Volatility can be frustrating for investors/researchers. So, we provide an alternative metric to the TV, called the 12-month median. This is the median sale figure from all sales that occurred in the last year. Because it covers a longer period of time, it has a much smoother curve on the historical chart. However, it may be well behind the 8-ball in fast-moving markets.
Some alternative sources for this kind of data include: