Works quite well but the hedonic index is quite different so the way the hedonic index works is we value every single property across the market regardless of whether it’s sold or not and the way we do that is is very similar to say human value up we look at individual properties look at what their attributes are this is really important for understanding value of a property and how many bedrooms as a have how many bathrooms what’s the land area what’s the property type what’s sold around it and from based on all that information.
We can then derive an estimated value on that property okay if we see the attributes on a property change over time then we don’t include that that their property in in the portfolio because it what we’re trying to cancel out the effect of capital injections say renovations for example rather than pure capital growth she in the end of the day once you value every single property what’s the consistent portfolio and you measure the change in the value that portfolio from period to period say day to day a month the month accorded a quarter it gives you a much better understanding of the true value change in a market place rather than.
The price changes which is really what you’re measuring in a median price okay so keep an eye on that index and anything else they yeah it should be heaps heaps of stuff but I think a couple of key ones would be how much stock is on the market okay right really really interesting www.sydneypropertyvaluations.net.au when you start looking at advertised stock levels in Sydney and Melbourne you can see that we’re starting to see real buildup in inventory not necessarily properties being added to the market really quickly there’s no dumping of stock by buy panic vendors but homes are selling much slower.
There’s less activity in the market place which means a lot more stale stock is building up great for buyers because you have a lot more choice you have much less urgency you can negotiate much harder but once you start to see inventory levels rising it’s a pretty good sign that buyers are back in the driver’s seat and they’ll put some downward pressure on prices okay and probably the final indicator I’d be looking at would be how much activities in the market volume right and once again really timely indicator updated every month.
We can start to see if volumes are rising that generally means there’s more demand in the market place it’s gonna start to place them up it’s pressure on prices when volumes are falling it generally implies less demand or it could imply a shortage of supply as well so typically if you see volumes falling the prices rising that would suggest that there’s an under supply demand is is exceeding supply and pushing prices high so I’ll ask you this question that since I’ve got in a studio because I get people running in sometimes querying this and they’ll do a that they’re researching a property seller