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Skip to 0 minutes and 5 seconds There are six common market activity

Skip to 0 minutes and 7 seconds types: active, depressed, strong, weak, buyer’s, and seller’s markets. As you know, market activity is not the same in every market area. Some may have an active market, or it might be a depressed market, or it might be a buyer’s market, or a seller’s market, or is it a strong market, or a weak market? Active markets show growth in demand of properties, and an increase in prices due to lag in supply of the right properties. Active markets can turn into strong markets, where there is a large volume of transactions. This type of market favours the seller, as they can obtain higher prices for their homes. It’s a seller’s market.

Skip to 0 minutes and 57 seconds On the other hand, a depressed market shows signs of a drop in demand, which causes a decline in prices and an oversupply of subject properties. Depressed markets can turn into to weak markets where there is a drop in transaction volumes. A weak market can also be referred to as a soft market. When we talk about a buyer’s market, this provides an advantage to the buyer, as the property price for a purchase is reduced due to the oversupply of property in the marketplace.

What is the property cycle?

Is there a “better” time to buy property (including land)?

What is meant by property cycle?

The property cycle tries to illustrate possible high and low points in the property market which may represent times to consider selling or buying respectively.

Watch Daniel Lamanna explain six common market activity types relevant to the property cycle. Daniel is an experienced and well-respected estate agent, with 20 years of real estate experience, and 10 of those being as the Director of a real estate franchise.

Read Understanding the property cycle when buying to develop a better understanding of the terms used to describe various phases of the property cycle.

Unfortunately, nobody rings a bell when we are at the bottom of the property market or at the top of the property market. Additionally, not every market area or city work together in unison. Have a look at Understanding the property cycle that highlights why it is difficult to forecast property prices.

Your task

Read the February, 2017 CoreLogic report on Home value index. Source a link to a recent Home Value Index report for your country and share it with your peers.

Where is your area in the property cycle? In your response, identify the location you are discussing.


Belot, H 2017, ‘Young Australians better off renting than buying a home, says economist Chris Richardson’, ABC News, 12 April, retrieved 17 April 2017, http://www.abc.net.au/news/2017-04-12/young-australians-better-off-renting-than-buying/8439396.

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What Influences Property Values?

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