How to Tell if a Property’s Value is Going Up or Down
Understanding how to tell if a property’s value is going up or down is crucial for investors, homeowners, and buyers. While no one can predict the future with complete certainty, analysing key factors can give you a strong indication of where prices are heading. Here’s what to look for.
Key Indicators of Property Value Changes
Several factors influence whether a property’s value will rise or fall. The two biggest drivers are supply and demand and capacity to pay. Here’s how they work:
Interest rate movements affecting borrowing power
Supply Constraints – Limited properties for sale usually drive prices up. Look for:
Low stock levels on the market
High hold periods (people staying in homes longer)
Low building approvals (fewer new homes being built)
Buyer Demand & Affordability – Prices rise when more buyers compete for fewer properties. Pay attention to:
Wage growth in the area
Population increases and migration trends
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Red Flags a Market May Be Declining
Not all areas experience growth. Here’s how to tell if a property’s value is going up or down in the wrong direction:
- Increasing stock levels – More homes for sale than buyers.
- Rising vacancy rates – Landlords struggling to find tenants.
- Longer days on market – Properties taking months to sell.
- Falling rental yields – Lower rents could signal oversupply.
What This Means for Investors
If you’re investing, focus on areas with strong fundamentals. A suburb with restricted supply and growing demand is likely to see price growth. However, timing is key—some hot markets may already be at their peak.
By understanding how to tell if a property’s value is going up or down, you can make better decisions and avoid costly mistakes. Want to see this analysis in action? Watch the full video on YouTube to learn how to pick a booming suburb!