The Moore Methodology

What it is

The Moore methodology is a mathematical formula that can determine the future direction of house price movement. It analyses the relationship between the days on the market versus the median price as readily available measures of supply and demand. It provides confidence and support for investment decision making.

How it came about

In 2002 a number of investors wanted to work out the formula for property investment success.  No more secrets being sold via education for thousands of dollars, there had to be a transparent understanding, however no one had put the elements together yet. These 60 investors spent over $120 million on property investment in a short period of time.

The results of this study, by John Moore, are now encapsulated in an industry standard Property Investment Advice course offered by the Property Investment Association of Australia.  http://www.piaa.asn.au

How it works

The following chart shows the Days on Market (Units) for Chatswood in NSW between the years of 2008 and 2015. It is overlayed with median price growth for the same period.

Example:

The following chart shows the Days on Market (Units) for Chatswood in NSW between the years of 2008 and 2015. It is overlayed with median price growth for the same period.

The sales price of units in Chatswood started to climb significantly from June 2013. This was the start in earnest of the most recent Sydney property boom.  In Sep 2013 we would have seen the sharp decrease in Days on Market from 80 the previous quarter, to about 60 in Sep 2013.  This increase in demand also correlated with an increase in Median Price.

The graph shows that over the period between June 2013 and Dec 2015 the median price increased approximately $250K. This is around 40% growth in property price in 2.5 years.