Hotspotting Podcast | Episode 70 - The Price Predictor Index - Spring 2018

Posted on 20/11/2018  
Hotspotting Podcast | Episode 70 - The Price Predictor Index - Spring 2018

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I regard the Price Predictor Index as our most important report.

It’s a quarterly report in which we scrutinise one of the key parts of the property price equation – demand.

We do that by examining the number of sales occurring in every suburb and town in Australia.

We do it every three months and we’re looking at sales activity to see patterns of demand – whether demand is rising in key markets, or whether demand is falling – or, as is the case in many locations, whether there’s a pattern of consistent and steady demand, quarter by quarter, over time.

The basic premise of this methodology is that prices respond to demand patterns – if demand is rising over time, prices will rise.

If demand is falling, price growth will slow down, and may eventually stop, and – in some instances – prices will fall.

The key factor here is that there’s a time lag. Prices don’t react instantaneously to changes in demand. It takes time for the changing demand patterns, whether up or down, to work through into property markets and create reactions in prices.

Our Price Predictor Index charts these rising and falling demand patterns in all the locations around Australia – so we are able to pinpoint the places where prices are about to rise, BEFORE the price increases happen.

For this reason, the Price Predictor Index is a unique report in Australian residential real estate.

No one else is employing this simple, but incredibly effective, method of determining where and when prices are going to rise.

And the new Spring edition is out now ! BUY IT NOW!

 

 

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