You can learn a lot from a location’s sales data.
What do we mean by this?
It goes a long way beyond the average sale price.
You want to find out how long properties stay on the market before they get sold.
It’s also important that you know how much of the location’s housing stock is on the market.
And you can go beyond that.
How many properties actually clear at auction?
How many people check out online listings in the location?
You need to know the answers to these questions for a simple reason…
They help you to figure out the balance between supply and demand.
How Can This Help?
Let’s look at the amount of time that properties take to sell first.
If properties get snapped up within a few days...
...that tells you there’s a ton of demand from buyers.
If that’s the case, then there’s likely also a supply issue...
...That lack of supply could lead to some people choosing to rent...
Plus, it puts the ball in the sellers’ court...
...They can ask for more money,
because they know they have a healthy pool of buyers.
Finding out how much of the location’s stock is on the market...
...is also a great indicator of demand.
The simple rule is that the more stock that’s on the market...
...the lower the demand from buyers.
This isn’t a guarantee that the location’s heading for a decline.
However, it’s definitely a sign that something isn’t quite right.
Low clearance rates at auctions tell you the same thing.
Buyers aren’t buying.
And that means sellers have to bring their prices down.
A location’s sales data...
...is one of the many factors that will affect your decision to invest.
Just remember that even a great property can be a bad investment...
...if you choose the wrong location.
We want to help you find high-performance properties in growing locations.
Want to cut through the noise, and invest in the right location, every time?
And remember, stay awesome, and keep dreaming bigger.