[Podcast] Number Crunching: How to Understand Property Data, with Kate Forbes

There’s no lack of property-specific data information out there.

It is often available with just the click of a mouse.  My Podcast #180 Propertystatistic2

However, with this increased availability of data, there are new challenges. 

How do you make sense out of all this data?

Whose numbers can you trust? 

In today’s episode of the Michael Yardney podcast, I chat with Kate Forbes about her specialty, how to interpret data. 

How important are median prices?

In the simplest sense, the median house price is the middle point of all sales ranked from high to low. Property Price

For example, if there is an influx of first home buyers in a location who are buying at the lower end of the price scale, then the median price will drop.

On the other hand, the median will go up if a lot of people in the area are renovating and upgrading their properties.

Median prices tell you what’s happened recently, but it doesn’t give you much information about individual properties.

What factors in supply and demand should you look at?

It’s important to understand a number of factors with the number of properties for sale. 

A number of new properties is indicative of vendor confidence. 

How long houses have been on the market matters as well.

If there are a lot of properties for sale, but they’ve all been there for a long time, that’s not a good sign. 

Days on market

I’ve found the trend of days on market can tell you whether we’re in a buyer’s or seller’s market.

If it’s taking longer for properties to sell, it’s usually a sign of softer market conditions and vice versa.

Vendor discounting

When there are fewer buyers out looking for property than there are properties for sale, vendors usually need to discount their asking prices to secure a buyer.

But when there’s plenty of buyer interest vendors have less need to discount their asking prices.

Market Depth

The more people that you have looking for one particular thing, the greater the market depth there. 

Rental Yield

If a rental yield starts rising that’s a sign that there is strong demand from tenants to live in those locations.

However, as more investors go to the location and property prices rise, rental yields begin to drop.

Links and Resources: 

Michael Yardney

Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us

Organise a time to speak with Kate Forbes- National Director Metropole by clicking here

Some of our favourite quotes from the show:

“We like market depth from owner-occupiers, not investors.” –Michael Yardney Price Property

“At any level of your financial journey, money management is important.” –Michael Yardney

“Being aware of your spending is one of the most powerful tools that you’ve got for being aware of yourself.” –Michael Yardney

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Michael Yardney

About

Michael is a director of Metropole Property Strategists who help their clients grow, protect and pass on their wealth through independent, unbiased property advice and advocacy. He's once again been voted Australia's leading property investment adviser and one of Australia's 50 most influential Thought Leaders. His opinions are regularly featured in the media. Visit Metropole.com.au


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