Five real estate metrics every seller should know
When it comes to selling your home, it’s important to be abreast of the current market conditions long before you list your property for sale.
But what exactly should you be looking at and where can you find the information you need? Here are five real estate metrics every seller should know, including what they indicate and where they can be found.
Median property price
The median sale price indicates how much properties in a suburb are currently selling for.
This data can be found on real estate portals such as realestate.com.au and Domain when you search for properties in a specific area, along with market insights website PropTrack.
Most of these sites also drill down into the median sale price of different types of properties, such as units, three-bedroom homes, four-bedroom homes and more, including how much those values have risen or fallen by over the past 12 months.
It’s a great starting point if you’re looking to determine the current value of similar properties in your suburb.
Supply and demand
That same set of data also extends to the current volume of listings on the market, along with how many buyers are searching for properties in that area.
This is a great way of determining market supply and demand, and offers an insight into whether there is likely to be competition for your property.
Days on market
Days on market is the number of days between when the property is advertised for sale and when it actually sells.
If you’re considering buying or selling, this number is an important one to know.
Low days on market for your suburb indicates property is selling quickly in your area. High days on market might indicate there is greater supply than demand.
Again, this figure is generally available under a real estate portal search for your suburb where it appears as ‘median time on market’ or ‘days on market’.
Vendor discounting
Vendor discounting is an indication of whether properties are achieving their list price or are being sold for a lower price.
And it’s a good metric to be abreast of to ensure you price your property correctly from the outset. This figure can be found at websites such as Property Value by searching your specific suburb.
The auction clearance rate
Regardless of whether you’re selling your property via auction or private treaty, the clearance rate is an indicator of supply and demand.
In a balanced market the clearance rate sits just above 60 per cent, meaning around two thirds of the properties listed for sale by auction sell on their auction day.
Less than that can be an indicator the market is shifting, while a higher percentage is a sign buyers are keen to secure a property.
The auction clearance rate is released weekly for the major capital markets and can be found on websites such as CoreLogic and Domain.
It’s all about insight
Selling any property involves market research to determine what’s going on in a specific area, and your trusted local real estate agent studies this information each and every day.
If you are considering selling, it’s worth asking them about the current state of your specific market including the metrics mentioned above.
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