It’s no wonder that investors get confused, when past performance stats are used by experts to give you two totally different predictions. Not only do they contradict each other, but they also don’t make sense. Just because a suburb has experienced high past price growth, doesn’t mean it will keep going. In fact, it is very likely that prices will soon be, or have already been pushed up to the point where buyers must start looking elsewhere and the growth is about to end.
But, neither does this mean that those suburbs with long histories of below average growth are lining up in the boom queue. They may have massive stock overhangs, depressed local economies or falling populations with further price declines ahead.