These Key Market Indicators Every Property Investor Should Know

If you are looking to invest in real estate, it is important to understand the current market Moves.

Here’s a look at some of the key indicators of the market and what they mean to you.

Is it the buyer’s or seller’s market?

Understanding whether you are in the buyer’s or seller’s market can help when it comes to pricing. In the buyer’s market, demand for supply is high, and buyers benefit. In the seller’s market, the opposite is true. The type of market can vary from suburban to suburban, depending on the property you are selling. According to CoreLogic’s Housing and Economic Report, the volume of inventory is down from the same time last year and it has started trending lower.

Property values

Increasing or dropping property prices can be another factor in increasing your decision-making equity. However, it is important to understand that the market can behave differently from place to place.

Auction approval rates

Auction approval rates are higher when the market is “hot”, and lower when cooled. They can indicate whether the property will be in high demand on the auction day. They can also help you decide whether to sell your property through auction or a private contract. Auction approval rates were strong in early 2016 and so far this year, on average, 68.5%.

Building activity

The building’s high level of reflection reflects the happy housing market. Many new buildings in the pipeline could indicate that with the increase in housing supply, there will be some downward pressure on property values ​​in the future.

Accommodation approval is historically high but below the current peak. The Australian Institute of Statistics (ABS) released building approval statistics for February and approved for construction of 18,252 houses over a month, representing a 3.1 percent increase in approvals. Are. Although approvals increased over a month, the trend continued to decline after the peak in March of last year.

Rental production

The rental product tells you how much the rental properties can get in proportion to their cost. If you are considering investing in property, they can help you make decisions.

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