Property buyers come in different groups, such as first home buyers, upgraders, downsizers and investors. Each of these has different motives and limits when it comes to buying property, so if we know which group is doing most of the buying, we can estimate when the growth is likely to end. And if we correctly forecast which group is likely to be next, we can buy just before the growth really kicks in.
Investors for example, are motivated only by profit. They enter markets when prices are rising and the more that prices rise, the more investors want to buy.