The Five Housing Stats That Really Matter
Residential property is possibly one of the best tracked markets, but when it comes to data it can be difficult to know what to look for and what really matters. Here are the top five statistics to track when you are looking to understand where the market it headed.
1. Median Prices – This is currently the best way to see how the market! is performing.
2. Rental Rates – Strong rental increases, coupled with strong increases in median price show that the market is strong from people who want to live in houses, as opposed to investors speculating in that market.
3. Clearance rates & number of auctions – Looking at clearance rates gives a weekly indication of the performance of the market. Generally if clearance rates are:
Above 80% – very strong conditions
70-80% – Strong conditions
60-70% – Moderate conditions
Below 60% – Slow market
4. Interest Rates – Low interest rates have been a key driver in investment in housing. Cheaper funding allows people to borrow more which leads to price growth.
5. Supply – Keeping track of upcoming supply provides an indication as to whether there is too much or too little housing being developed. The ABS tracks a range of housing supply indicators including housing approvals, completions and commencements.