There are 2 kpi's that are the easiest barometers of a real estate business and subsequently some insight into the market conditons. These are how many new properties are listed and how many properties are sold. Prices, of course, are the ultimate dictator of a good or bad market, but when you examine movement it gives you access to predict what's likely to happen.
This month, in a historically a buyer's market, we see that the number of new properties listed matches exactly with the number of properties sold. What does this mean? It means that if there is a leveling in the market. In a boom there are more sales than new listings, properties sell before they are marketed. In a bust there are more listings than sales, days on market is stretched and buyers aren't buying. When they match it says that if a fresh property to the market doesn't sell quickly it will most likely lay dormant for 60-70 days. It shows a building of confidence from both buyers and sellers, leading to competition over properties. It shows fair interest rates and lending criteria's from the banks. If these conditions stay on track, this is what's called a 'Normal' real estate market.
On a personal note (a bit belated) thanks to all the mums out there and Happy Mothers Day! Mine, who got me into real estate, is only a few weeks away from retiring at Ray White Moorooka after 25 years - Thanks Jude!! Also, congratulations to the new owner, Neal Young, and welcome to the Ray White team.