The Top 5 Economists Real Estate Agents Follow
With so many opinions out there who can you trust to give you a real insight into what’s happening in the real estate market.
Well this should help, by following the most trusted economists in the real estate industry. These economists aren’t just spruikers or trying to sell something. Their predictions have been proven time and time again and are relatively conservative. Don’t get me wrong you can’t be 100% right all the time, but I would say if you combine all their opinions you can be up to 80%+ correct.
Insights you will also get;
- You will also get a nice broad outlook and get great insights into the submarkets that you’re interested in.
- This should give you confidence where you want to purchase.
- Help manage your own expectations from being out of sync of what is happening in the property market.
- Auction clearance rates will give you a marker of hell you should make an offer and for how much.
How to interpret economists
By gaining insights from these leading economists it has personally help me make confident decisions when buying and selling property. Interpreting economists has helped me make over $200,000 in my personal equity, and growing.
Bears and bulls
Basically bears and negative and balls are positive. And after reading some of the economists and opinions out there you’ll be able to determine how bullish or bearish they are. Take this into account when reading the comments, and yes, they can have great insights but they can also be positively and negatively influenced by their own outlook in life.
But one economist said.……
Never take one of economist’s opinions in isolation. This could land you in big trouble as they can change their opinion in less than a month. So don’t freak out when your favourite economist said something you don’t want to hear. They may be right in their opinion but if you combine all the economists and date out together you’ll get a more accurate outlook on that particular subject.
Why only look at 5 economists?
Any more can be too overwhelming to follow and research at the same time. I recommend you look at opinions they have given 6 months and 12 months prior to see if they were correct. If you would do this with more than five leading economists I can imagine you probably wouldn’t do the research.
I have found these economists to be right, time and time again in their six-month outlook and even in the twelve-month outlook of the market. There are a lot of professional opinions out there. It is very time consuming to filter all the spruikers and salespeople that are just trying to sell you something.
- Dr Andrew Wilson is the Senior Economist at Domain
- Tim Lawless, RP Data’s chief economist
- Glenn Stevens current Governor of the Reserve Bank of Australia
- SQM Research managing director Louis Christopher
- Big 4 chief economist (constantly changing)
I count them as one because they all move in one line, usually one falling in, one after another on most subjects. It may take some time but they eventually fold and say the same thing as each other so don’t freak out.
Take each one’s opinion as a grain of salt. If you take their opinions collectively their 6-month outlook can be very accurate but not so much their 12 month outlook. You can also get other insights into the mortgage market which can help you get the finance/rate you want.
Check out Pete Wargent’s blog, he is very qualified and an author of 3 investment books. He uses a lot of hard data to back up his predictions.
I find by knowing which market is at the top or at the bottom of the property cycle I can time my purchases with them, and then add on extra factors such as following infrastructure for price growth.
“Time in the market always beats timing the market” said Robyn Atkins, author and property mentor. In other words, don’t sit on the fence waiting for the market to come down for too long. It may never happen.
This also helps me negotiate with other agents and get a good deal. For example if it is a rising market in which I just purchased recently in,
I found I needed to buy prior to Auction due to auction clearance rates being over 75% in the market I was buying In. This also helped me gauge my offer to realise I needed to offer 10% higher of what the recent sales were to secure a property in this competitive market. If it was in a downward market then I would’ve chosen a completely different strategy.
These are just some of the market insights that can practically help you secure your next property, in a solid market, that is predicted for growth.
We all follow these economists in our office to help gauge what the market is doing in Sydney and in all of Australia and how it affects our market in the Seven Hills area. We need to know this because all submarkets such as a local area performs differently to the overall property market. This helps us to give accurate property appraisals and helps us plan for our business for the future.
About Jhai Mitchell
Jhai is an award winning Internet Marketing Real Estate Agent for Elders Toongabbie and Kings Langley. After running his own internet marketing business he has now set his own sites for the real estate industry. He observed that 90% of real estate agents did not know how to market themselves online. Jhai is now fixed on one goal. To teach real estate agents that they can market online so much better than they currently are.
Since then he has been consistently quoted in the Sydney Morning Herald and Real Estate Business online. He is a regular guest blogger on TheHomePage.com.au, sharing his expertise of marketing aspects for the Real Estate Industry. His biggest passions are his wife, martial arts, dogs and most of all property.