Avnu’s new property report is a desktop appraisal tool, providing you with up-to-date metrics about your home including property price estimate and rental price estimate.
Accessing it is an excellent first step to understanding your property’s position in the market and can help you decide what your next property move might be. Understand exactly what each metric included in your property report means to maximise the value you get from it.
Here’s what is included in your report:
Estimated Property Value
Avnu’s property report provides you with an estimated property sale price if you were to sell in the current climate. This estimate is generated by using Corelogic’s data and tailored algorithm. Corelogic is the real estate industry’s data provider for most property organisations and real estate agents, including the Reserve Bank of Australia. Their algorithms are used widely in the real estate industry, and Avnu has brought this professional, industry-standard tool to homeowners.
Your estimated property worth is presented as a range, with an average of the highest and lowest estimated values in the middle, to articulate the most likely sale price. This is calculated by using recent sales data of properties similar to yours, based on the latest data the Core Logic has on your home, which is most likely from the last time it was bought, sold, or rented.
Your home price estimate is provided with a “confidence rating”. This rating will be somewhere from low to high and indicates how accurate the algorithm believes its own prediction is. The confidence rating given is dependent on how much public data the algorithm has access to and how accurate said data is.
The algorithm may give you a low or medium confidence rating because your property hasn’t been listed in a while or there aren’t many comparable sales to your property recently. It’s crucial to notify either Avnu or Core Logic you believe the estimated value range is incorrect as we have the tools to give you the latest estimate.
If your home has been listed on the market prior to your purchase, Corelogic will have historical sales data about your home. The estimated growth shows you the difference between the price that you purchased the property for and the average estimated property value provided by the algorithm. This demonstrates the growth of your property’s value over the years that you have held it. This is shown in the difference between value and also a percentage increase.
This metric is a great way to know how much you profit you have made by simply investing in your property. If you’d like to watch it grow further, you could decide to hold off on selling. If you have tenants, it might also show you how much rent you should be charging in accordance with the growth of your home’s worth.
The property history displays all data that is publicly available on the property being sold or even rented. This includes sales prior to your ownership of the property. It’s a great way to understand if, or when, your property has been developed in the past and what its value growth has been throughout the years.
This is an important statistic to be aware of as it can indicate how many successful sales your property has had and if buyers are quick to purchase it. If it’s sales are long or unsuccessful, you might like to ask your agent how to take your home to the next level.
Current Market Snapshot
The current market snapshot gives you an idea of the property market landscape in your city and locality.
The snapshot provides the Auction Clearance Rate for your city, for example, Sydney or Brisbane. The higher the percentage, the more properties are selling at auction, rather than passing in. Auction Clearance Rate is useful for understanding whether or not you would like to put your property up for auction and if there is general buyer demand in the market at present. However, a low Auction Clearance Rate is not necessarily indicative of a weak micro-market.
The market snapshot also depicts Total New Listings for your suburb over the past 12 months. It also shows how much this number has grown compared to the 12 months prior. Many new listings means strong seller confidence in the market and lower levels of new listings means there is less competition to sell your property.
Also displayed, is the Median Vendor Discount in your suburb, or the amount by which someone reduces their property’s asking price in order to sell it. A higher vendor discount indicates that people have had to discount their property a fair amount and vice versa. This statistic also displays the Median Vendor Discount from the 12 months prior, calculated in the property report. This is important for sellers because it can give you an indication of whether or not buyers are purchasing properties for their asking price.
Change in Median Price for your local area is also depicted in the market report. This is how much the median property values in your area have risen over time and is a great indicator of your property’s value and the strength in the market.
Finally, Average Hold Period is the average number of years people in your suburb own their property for. A suburb with a higher Average Hold Period usually has higher buyer demand, as it’s more difficult to find a property to purchase in these areas.
The next section in your free Property Report is Property Insights. This section details the activity and strength of the property market in your area at the exact moment that you generate the property report, meaning it could change from day to day.
To analyse the market, displayed first is Property Supply. This is the number of properties that are currently listed for sale. This number is shown as either high, neutral, or low. Underneath, a caption displays how the supply compares to the 10-year average. A high property supply shows a substantial amount of seller confidence in the market, which is a great indicator that the market is favourable for selling.
Next is Buyer Demand. This is again displayed in terms of high, neutral or low and indicates the number of buyers looking in the area to purchase a property. This number is found by looking at Sydney’s overall median days on market and comparing this to your suburb’s statistic. A small caption underneath compares your suburb’s median days on market to Sydney’s, to discover whether buyer demand in your suburb is performing relatively well. High buyer demand means it’s an excellent time to sell, as there are plenty of buyers out there searching for properties.
Finally, the Median Sales Price for your suburb is displayed. This statistic is calculated over the past 12 months to when the property report was generated. It gives an idea of the price range in your suburb and what the expectation of buyers is. The higher the median sales price, the better for the seller as it’s likely you will receive a better price for your sale.
Market Trends for your Suburb
This section is made up of graphs and statistics to help you understand the trends for your suburb over either 12 months or 10 years (whichever you select). The first is a graph of Median Sale Price and is displayed as growth in said price over your chosen period of time. It demonstrates the level of price fluctuation in your suburb. For sellers, it’s ideal for this to be trending upwards, because it means the market is strong and it’s a good time to sell.
Next is Median Rental Price. This is growth in the median price of rent over 12 months or 10 years so you can see past trends, and perhaps the trajectory on which rent prices could be heading. This metric is particularly useful if you’re deciding whether to rent or sell your home.
Median Days on Market is the next graph shown. It demonstrates the strength of buyer demand in the market, and how motivated sellers are in your area. A lower median days on market is usually best for sellers, as it indicates that buyers are purchasing property quickly.
Finally, Number of Properties Sold is the trend in properties sold per year or month. It’s a great way to understand whether the market is stimulated and has a lot of activity. Although it doesn’t necessarily correspond with whether or not your property will sell, a higher number of properties sold is often better as it indicates a hot market and motivated buyers.
In this section, there is also a table provided on the right-hand side, showing changes each year, or month, of all the above metrics. This is useful for tracking how exactly these trends have changed in response to certain economic environments.
Auction vs Private Treaty
This statistic shows which sales method most people in your area have chosen over the past 12 months. This can indicate which method is most popular and may influence the sales method you choose to sell your home.
The Property Report generates a list of properties near you that are on the market right now and ones that have been recently sold. These properties also have quite similar features to yours, such as the number of bedrooms and bathrooms. This will allow you to have a good idea of what your sale could look like and the result you might get.
This section includes a range of weekly rental prices that the algorithm has estimated for your property with the help of comparable rental properties. It then shows the average rental yield for your micro market, in comparison with the average rental yield for Sydney. There are also statistics for median house price growth over the past 5 years as well as the rental price growth over the same period of time.
This metric is particularly useful in the instance that you might be interested in renting out your property. This is a great tool to figure out whether or not you would like to pursue this avenue and if you would like to further your discussions with a property manager.
The final section of the market report is a suburb snapshot. If this is your suburb, you probably already have some analogical evidence to back up these claims about the suburb demographics, but it’s still useful to know the exact facts.
The suburb snapshot looks at Population and Population Change Over the Past 5 Years. This helps you to understand if your suburb is developing quickly and if people are flocking to said developments. If so, it might be a great time to sell because your area is becoming more valuable.
Next to be displayed is the Average Age Range, so you can understand what type of people live in your suburb and who the ideal buyers might be.
Then GPO Distance is displayed, which you probably already have a rough idea of. This is perfect for buyers looking at your property as they get a feel of how long it might take them to commute.
Average Length of Ownership gives an idea of how “tightly held” your suburb is. This means how long people hold on to their properties in the area, which can lead to buyers snapping up property as they don’t know when it would next be available. The more tightly held your suburb is, the more likely buyers will want to quickly purchase the property.
Nearby Schools is a great way to further advertise the property to buyers, as potential buyers can really imagine themselves immersed in the community and the area near your home.
Generate your property report now to understand your property’s full potential and it’s marketability.
DISCLAIMER – The information provided is for guidance and informational purposes only and does not replace independent business, legal and financial advice which we strongly recommend. Whilst the information is considered true and correct at the date of publication, changes in circumstances after the time of publication may impact the accuracy of the information provided. LJ Hooker Avnu will not accept responsibility or liability for any reliance on the blog information, including but not limited to, the accuracy, currency or completeness of any information or links.