Australia is known for having a pretty stable real estate market, but when it comes to buying a home, you still need to dedicate time and energy into doing your research prior.
You can research the property market through different online platforms like Australian Property Monitors, Residex, and CoreLogic.
However, with too much information and so much jargon, it can be easy to fall into the web of information provided on the internet.
To keep you on top of new property listings, there are a number of online platforms (like RealEstate.com.au) that allow you to turn the notification alerts on. So whenever they add a new property to their site, you’ll get a pop-up notification about it.
This makes it easier for you to keep track of the latest entries. However, be sure to define the alert criteria based on your requirements as it will help you get notifications about the houses that may still be suitable for you.
Expert Secrets on How to Research the Property Market
- Choose the Right Area
- Analyse Population Growth and Demographics
- Visit Property Inspections Even If You’re Not Ready to Buy
- Talk to the Experts and Locals
1. Choose the Right Area
To start off, you’ll need to decide on the area or location where you’ll start researching the property market. For example, if you have children, start researching suburbs where there are schools and public transport within close vicinity.
Similarly, if you are planning to move in with elderly parents, find a location, with a hospital facility nearby.
When researching the property market, keep supply and demand in mind.
Another factor to keep in mind when researching the property market is the potential for capital growth.
The problem is that not every property experiences an increase in value.
The reality is that in some territories and states across Australia property prices are declining. So look at surrounding suburb growth. If it’s a rural town learn about the main industries offered in the area and the number of job opportunities advertised. Along with any data on suburb or city forecasts, you can find too.
New construction for grocery stores or shopping centres is a promising sign and can also be an indicator that a suburb is forecast to grow.
The market cycle is another factor to understand when researching the property market. This it gives you a fair idea of how much a house is worth in a particular area. The area might represent a seller’s market or a buyer’s market. Or it could simply be an old house going for cheap that is high in demand amongst buyers and investors. Look at different property types and compare the costs. From old houses to recently renovated properties and the timeline of previously sold properties.
On RealEstate.com.au you can go to the SOLD tab on the website and get historic data or properties that have sold over the past year and see how much they sold for.
2. Analyse the Population Growth and Demographics
It’s important to pay attention to the demographic in the area when looking for a home. Find out the average age of those living in your neighbourhood.
If you are in a couple with young kids, look for a suburb where you can occasionally hang out with people around your age who also have children.
Also consider the population growth within the area. If the population is growing in a certain suburb, the demand for houses increases and the supply will decrease.
This eventually leads to higher property prices. Therefore, keep these factors in mind as well when you are researching.
3. Visit Property Inspections Even If You’re Not Ready to Buy
The best way to assess property prices and condition of properties is to visit as many property inspections as you can. This gives you a fair idea of what to look for when selecting a property. Along with getting a better understanding of what people are willing to pay for homes recently renovated.
Look for properties sold within the past 6 months. This data can be compared with the property you are interested in. This will give you a better idea about its pricing.
Our advice is to create a spreadsheet with previous sales in the area. In it, include current selling prices and compare market growth, and standard prices.
This will grow your understanding and help you get a better deal. Then when it comes to buying you’ll be familiar with what properties of the same value in the area have sold for.
The lower you can negotiate the property price that you’re buying, the better position you’ll be in. As it leaves more room for the property price/value to go up in the future.
If you do find a property, it might be worth organising a valuation before applying for a loan. However, there are many lenders who prefer to do the valuation themselves too.
4. Talk to the Experts and Locals
Last but not the least, when researching the property market, make sure you talk to the experts and locals in different areas. Locals can give you a deeper understanding of a particular area, whereas, an expert will tell you about other market dynamics that affect property prices.
So in summary, our key takeaway points to remember when researching the property market are:
- The best places to look for a property are emerging suburbs
- Amenities, such as transportation facilities or a hospital, should be at a walking distance
- Look for the comparable properties that are sold in the past 6 months to get a clear picture of how the property market works.
- Go to as many property inspections as you can
- Seek the advice of a property expert
Speak to Hunter Galloway today or read more about our tips for first home buyers here.