Property Statistics Not Always Best Indicator of Growth
The use of statistics on the property market and the appetite for them by the public is almost insatiable these days with media reports daily on the monthly, quarterly, six monthly or yearly median prices in a suburb, town, city or state. The reality is the data is only as good as the volume that is captured to achieve a data set from. Not only that, but I have discussed before about the usefulness of median prices over anything less than a medium to long term period (5 to 10 years) being almost negligible due to fluctuations in types of property sold in an area.
With the above in mind, it may only be one thing currently occurring in a particular area that drives prices higher and can provide a lure to that area being the ‘next big thing’. Unless that one thing driving prices has substance and can be sustained well into the future it can in fact create a false market in that area and prices exceed value for the type of property being sold. When doing research into an area, look into what has previously happened rather than just what is happening at this point in time. History can provide a fantastic insight into how what is currently going on can be sustained into the future and provide longevity of growth rather than a flash in the pan and last years ‘big thing’.
If you would like to understand what makes a market tick and how performance is sustained call us for a chat on (07) 3368 1604 or email us.