Forums / Property Investing / General Property / Market Trends to Watch for

Find Out All The Details Of Steve McKnight’s New 90 Day Mentoring ProgramFor A Live 90-minute Webinar
Viewing 5 posts - 1 through 5 (of 5 total)
  • Profile photo of KristynKristyn
    Participant
    @kristyn-wuebbolticloud-com
    Join Date: 2017
    Post Count: 1

    Hello all!

    I am trying to break down which stats I should be watching to best understand real estate market trends. I’d appreciate any advice !

    So far, i’ve got:
    1. Demographics (baby boomer trends)
    2. Interest Rates
    3. Legislation
    4. Oil Prices
    5. Economy Factors such as -> GDP, Employment Rates, CPI

    I’d really appreciate any tips on what to look for in the above stats, as well as, any other relevant stats.

    Profile photo of Corey BattCorey Batt
    Participant
    @cjaysa
    Join Date: 2012
    Post Count: 1,010

    Most important is supply/demand of property in a specified area. What’s going to impact prices of property in an area more – oil prices or a doubling of stock coming on the market or a reduction in population in a local area reducing the demand?

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of BennyBenny
    Moderator
    @benny
    Join Date: 2002
    Post Count: 1,376

    Hi Kristyn,
    This is one demographic that is of very high importance – Steve outlines it well here:-
    https://www.propertyinvesting.com/watch-out-for-this-simple-stat/

    In essence, always buy in an area where Owners outnumber Landlords markedly. Because Homeowners don’t relish losing their house, they will hang on by their fingertips no matter what. This puts a solid base under house values in areas where Homeowners outnumber Landlords.

    Benny

    Profile photo of JaxonJaxon
    Participant
    @jaxona
    Join Date: 2014
    Post Count: 282

    Both the above advice is great advice.

    I think I get were your coming from with Commodities price.

    the big things are
    -access to debt/credit
    -buyer confidence
    -supply/demand as Corey put nicely
    -economic perception
    -rental occupancy rates
    – sale stats
    and a multitude of other factors.

    This is such a complex and deep question because truly knowing the answer would you mean you understand the whole trend of the market in each area of the country.

    But a great topic and something I ponder and study daily.

    Profile photo of David HallDavid Hall
    Participant
    @wiggles2
    Join Date: 2014
    Post Count: 64

    There are two leading indicators that I am looking for.
    1) Rental market. This is the first and leading indicator of what is happening in a market.
    Is the number of properties for rent rising or falling? Are rents increasing or decreasing?
    A tightening rental market is the first indicator of house price growth to come, an loosening rental market is a sign of price drops to come. Perth is a classic example. The rental market headed south 6-9 months before the sales market followed suit. The rental market is now recovering. Housing will follow, but it is always behind the rental market.

    2) Stock on market. Increasing number of houses for sale = falling prices. A decrease of stock = rising prices. Stock staying the same = flat prices in line with CPI.

    For example, Perth currently has 14,500 properties for sale, which is an over supplied market, hence our recent poor performance (there is a reason why it is called a buyers market!). 13,000 is a balanced market. Prices will generally increase inline with CPI. 11,500 properties for sale is a sellers market. Expect prices to rise above inflation, with strong competition for good properties. Sub 10,000 is an out of control market, with poor quality properties selling for a premium.

    David Hall | Momentum Wealth
    http://www.momentumwealth.com.au/
    Email Me | Phone Me

    Buyers Agent

Viewing 5 posts - 1 through 5 (of 5 total)

You must be logged in to reply to this topic.