Price Predictor Index
Have you ever noticed that the often-quoted rising or falling median house prices for a location don’t
seem to match the reality of the market?
That’s because median house price statistics are prone to significant anomalies, which can lead to an inaccurate analysis of a location. Median prices also focus on what has already happened, whereas investors are more interested in what might happen in the future.
Instead of median house price data, we focus on the Price Predictor Index.
Based on trends in data, the Price Predictor Index is a forward-looking tool to identify locations in growth or decline, helping you decide where you should invest next. It’s based on a simple premise – the number of sales comes first, and then prices react.
By using this index, investors can buy ahead of the price growth, finding locations where sales have grown but prices have not yet moved.
This report tracks, state by state, locations where:
- Sales activity is rising, and therefore prices are likely to rise,
- Sales activity is falling, and therefore prices are likely to fall,
- Sales activity is steady, and therefore growth is steady.
This report will help you to:
- Predict future trends and price movements in property across Australia,
- Accurately pinpoint areas where you should invest based on your own strategy of growth, or consistency,
- Avoid areas where prices are falling
- Better understand the location you’re investing in, by removing the statistical anomalies presented by median house price data.
We think this is one of our most powerful reports, and one that every investor should have before they make their investment decisions.
- 113 pages of data and analysis, compiled by some of Australia’s best real estate experts,
- Australia’s top 100 supercharged suburbs, and top 50 consistent performers,
- State-by-state, suburb-by-suburb* analysis to help you identify locations of future growth, consistent growth and future decline,
- Additional demographic and infrastructure information to help you build a picture of a location,
- Analysis and interpretation to help you understand the data.
Grab Your Copy Today!
This report will be delivered electronically to your inbox.
This report is updated quarterly. You will receive the Summer 2023-24 edition with this purchase.
*Only suburbs with statistically significant results have been included.
The Price Predictor Index Report in action – a case study
Hotspotting’s own Tim Graham used the data in the Price Predictor Index Report to identify growth locations for investment. He chose a property in the Queensland suburb of Springfield Lakes, and within 12 months had experienced an uplift in equity of approximately $200,000. Tim then used the Price Predictor Index Report again to identify that this location had plateaued. Based on the data in this report, Tim released equity from the property when at the top of the market. Find out more about Tim’s experience in the video below.
Why do we use median house price data in the Property Price Index Report?
We’ve just told you not to trust median house price data when making investment decisions and to focus on the Property Price Index instead, yet we use median house price data in this report.
We’ve used median house price data to give you an indication of property prices, so you can quickly and easily see if you can afford to purchase in that location. But we haven’t used this data to make predictions – instead we’ve used the Property Price Index formula.