Many property commentators are in constant debate over what is most important for investors when making decisions on what to buy. Is it median prices or sales figures?
Michael Matusik is the head of the property advisory group Matusik Missive, and he said that sales volumes, especially sales by price range, are more important to assess how the current market is performing and how it is fundamentally driven.
However Andrew Wilson, senior economist at the Australian Property Monitor, said that median prices are more important to assess how the market can progress in the future. He explained that median price growth enables investors to predict future growth based on the long term average. Wilson also said that price growths tend to ebb and flow and markets can go through periods of high increase before hitting a ceiling.
However, Matusik emphasised that sales volumes provide more accurate information on what’s happening on the market and are great for predicting the future of the market. He believes that buyers and future investors should be educated on sales figures.