Sales volumes mean more than medians
15.08.2013 | Terry Ryder
Media tends to chart property markets by movements in median house prices. But the data from research firms is often full of anomalies and most writers don’t understand the workings and limitations of median prices, so the resulting information is usually worthless to consumers.
Much more useful to buyers and sellers is charting movements in sales volumes. This has real value because changes in the number of home sales inform likely future movements in prices.
Many Queensland markets have done little value-wise this year, notably in Brisbane and South-East Queensland, but momentum for rising prices is building. Figures from the Real Estate Institute of Queensland indicate significant increases in the number of sales, firstly in the March Quarter compared to the December 2012 Quarter and then again in the June 2013 Quarter.
The number of house sales in Queensland rose 17% in the June Quarter, while apartment sales grew 28% and the number of sales of residential allotments increased 24%.
Those are significant changes and are likely forerunners to price rises.