Understanding Market Reports

What does a property market report tell you?

A market report describes a particular set of properties over a particular period. It can help you ask better questions about selling, buying or investing, but it is not a valuation of your home or a prediction of the price it will achieve.

Start by checking the source, publication date, area, property types and number of sales. A report for all Auckland homes may be useful background without describing the same properties as a small Silverdale or Millwater sample.

Read the measures in context

Median sale price is the middle price when sales are ordered from lowest to highest. It is less affected by an unusually expensive sale than an average, but both measures can change when the mix of homes sold changes. A rise in the median does not mean every home rose by the same amount.

Days to sell needs its source definition: check whether the figure is a median or average and how the start date is recorded. REINZ uses the listing date supplied by members, usually the date the listing agreement was signed. A shorter period alone does not establish why properties sold faster.

Sales volume is the number of reported sales. Compare like periods and consider the size of the sample. A percentage change based on a handful of transactions can look dramatic without showing a broad shift.

Asking prices and sale prices answer different questions. Check whether a price comparison uses the original or latest asking price and which sales are included. Price per square metre also needs comparable floor-area definitions and properties.

Connect the report to your property

Look at several periods and the underlying homes, rather than treating one monthly headline as a forecast. Condition, layout, land, access and the terms of a sale can all matter when comparing individual properties.

For the methodology, read REINZ’s explanation of its property data. To discuss relevant comparable sales and the limits of the evidence for your home, explore our appraisal approach or contact Ray White Silverdale. Ask which current information is available rather than assuming a monthly custom report is included.