The Importance of Statistics in Real Estate

The Importance of Statistics in Real Estate

The Australian property market is made up of approximately 9.9 million private dwellings according to the 2011 Census, 68% of vendors would recommend their agent to family or friends and women make up 65% of the real estate industry. Why are we talking statistics? Well in our profession, real estate and statistics go together like house and land. 

 

In the real estate industry we can’t express enough the importance of examining statistics, where they have come from and the role they can play in the decision-making process for a prospective vendor.  

 

The most important thing to know is how statistics are obtained and utilised. There are many instances in which reading the “fine print” is necessary to truly understand the context of the numbers being displayed. Headline grabs, displaying extreme statistics is one tactic commonly used to entice readers in or influence clients. It doesn’t necessarily mean that the statistics are factually correct. Always look for or enquire where a statistic has been sourced from to verify the accuracy of such statements and ensure numbers haven’t been manipulated to fit the intended message.  

 

When thoroughly examined and accurately documented statistics can be very helpful for sellers. When working with our sellers, we look at and consider statistics related to comparable properties, median growth percentages in their suburb, demand for their type of property, where enquiries for their type of property come from, year to year on market property comparisons, days on market, sold price versus listing price, our volume of sales in their immediate area in a recent timeframe, matching buyers in our database, and more.  

 

All of these aspects help our sellers make an informed decision to choose the best agency and agent, gives reassurance they are using the best strategy to optimise results and also aids in negotiations when a contract is received.  

 

At Hinternoosa we are a statistics driven company. By collecting the appropriate data on a weekly, monthly and yearly basis and sharing this with our clients, they are equipped with the quality information they need regarding market insights and trends.