Research: How to measure sales demand

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Measuring sales demand in an area is an important way of assessing the health of the local property market. When there is high demand (a seller's market), the market is healthy and prices may rise soon.

Conversely, when there is an excess of supply on the market and low demand, it's a buyer's market and prices may fall soon.

With our comprehensive transaction and on-market data, PropertyData's Local Data tool can assess sales demand for you.

Start by defining the area that you are interested in. You need to ensure that the area is large enough to have meaningful data, yet not so large that the data becomes less relevant.

Once you're satisfied with the area, click 'Generate data' and the PropertyData market analytics dashboard will appear after just a few seconds.

Navigate to the 'Activity' tab at the top and you'll arrive on the 'Sales market' activity subtab by default:

Let's break down what we're seeing. The bar chart on the left shows the sales per month in your defined area for the last 3 years. The average at the top is for the last 3 full months of data (data is provisional when first released by the Land Registry).

Below that bar chart, you'll see the number of properties for sale, and statistics on how quick properties are selling.

Finally, this is translated into the all-important turnover figure on the right – what % of the stock sells each month. We categorise this as follows:

  • 20%+ – Seller's market
  • 12-20% – Balanced market
  • <12% – Buyer's market

In the example we have shown here you can see demand is low, and properties are sitting on the market for a long time, and therefore the turnover is only 2% and we have labelled in a Buyer's market.

If you want to find the areas with the highest sales demand, have a look at our Postcode Data, where you can add Sales turnover as a column or order by it.

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