John Lindeman?s formula, what do you reckon?
Went to a workshop over the weekend, run by Results Mentoring, apart from their usual sale pitch, they raised a very interesting point --- how to determine the stage of particular suburb.
They first locate the sales number for the past 12 month from a property magazine (API, ect). Then they go to realestate.com.au to find out the current listing (house and townhouse only, untick the surrounding suburbs box).
Next, compare the 2 figures:
Ratio = current listing / number of sales for the past 12 month.
If the ratio < 1 means: seller?s market,
Ratio >1 means: buyer?s market.
Ration =1 means neutral market.
They reckon the best ratio to buy is between 0.5 ? 2.
For example, let's use Arana Hills QLD 4054 as an example, the current listing on realestate is 306, API indicates number sold is 137. Thus the ratio is 306/137 = 2.2, more sellers than buyers, conclusion: good time to buy.
What do you reckon the idea of ratio?
Went to a workshop over the weekend, run by Results Mentoring, apart from their usual sale pitch, they raised a very interesting point --- how to determine the stage of particular suburb.
They first locate the sales number for the past 12 month from a property magazine (API, ect). Then they go to realestate.com.au to find out the current listing (house and townhouse only, untick the surrounding suburbs box).
Next, compare the 2 figures:
Ratio = current listing / number of sales for the past 12 month.
If the ratio < 1 means: seller?s market,
Ratio >1 means: buyer?s market.
Ration =1 means neutral market.
They reckon the best ratio to buy is between 0.5 ? 2.
For example, let's use Arana Hills QLD 4054 as an example, the current listing on realestate is 306, API indicates number sold is 137. Thus the ratio is 306/137 = 2.2, more sellers than buyers, conclusion: good time to buy.
What do you reckon the idea of ratio?