When comparing the performance of various property markets, most focus on the change in property values.
But there is much, much more.
I've included two tables this post.
Please take 30 seconds to look at them.
Most will focus on the price column in the first table and then spend most of their time reviewing the change in price.
Many will take sides too, either agreeing with or rejecting, my summary of the annual change in the median price data.
But few will focus on the sales volumes in table 1 and even less will spend much time – in my experience - on the second table at all.
Yet, sales volume and especially volumes by price group (and product type) are the key elements to understanding a housing market.
Our minds have been hijacked by price and especially its annual, monthly and even, now, daily movement.
- Also read:Latest Asking Prices State by State | Listings and asking prices steady in lead up to market hiatus
- Also read:Latest property price forecasts for 2024 revealed. What’s ahead in our housing markets in the next year or two?
- Also read:Here’s how to avoid these 12 common reasons property investors fail to build a Multi Million Dollar Property Portfolio
- Also read:Heat comes out of the housing market as values across Melbourne dip and Sydney slows | Corelogic Home Value Index
- Also read:Sydney property market forecast for 2024
Most online databases promote price.
The name of my preferred sales database – Price Finder – speaks volumes.
When my business undertakes market analysis - or when Paul Broad and I are commissioned to provide project advice - we always spend considerable time understanding, and illustrating, the size of the relevant housing segment.
You need to understand the size of your market, what market share you can realistically achieve and your competitive set.
The aim should be to reduce your sales risk.
It’s rare to be able to grow a market.
At times it can be done but almost always at high expense.
Its best to know the market’s limitations from the get-go and plan accordingly.