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How do you know the best time to sell your property? It's easy to monitor the market with this free tool.

The property market goes up and down all the time. So how do you know when's the best time to sell your property? Luckily, there's a tool out there to help you assess the market on an ongoing basis to understand the trends in your current suburb and whether or not you should think about getting out and selling your property before the market goes down or before it plateaus.

To do this, we're going to use a tool called DSR Data, which stands for Demand to Supply Ratio and you can get this over at dsrdata.com.au. This is a really great tool and it gathers a lot of different information from around the internet; different sources to try and assess how much demand is there for properties in the area compared to the supply of properties in the area. And so, ideally, you don't want to sell when the DSR is extremely high because this means that you're likely going to get some growth in the future. However, when the DSR starts decreasing, then you want to think about selling.

Let's go ahead and look at a suburb where I used to live called Cronulla. So, I'm going to put in "Cronulla" for units and we can see – it will come up in a second – that the DSR for Cronulla is – I think it's 74 out of 100. There we go, 74 out of 100. Now, if the DSR is 50 out of 100, that theoretically means that the market is balanced, so there is equal demand and equal supply. If it's below 50, that means that there's more supply than demand, which is not a great situation. And if it's above 50, and the higher above 50 it is, means the more demand there is for the area.

So if we go ahead and create an account and login, which is absolutely free. What we can do is we can actually Market Monitor. So if you own a property in an area, we can setup monitors for your area and you can get emailed every time something happens in your area that you want to be aware of. And I'll show you through this, but this is really cool because you can say, okay, the DSR data of my area is "X", notify me when it drops below that. So, let's go ahead and we'll put in Cronulla in New South Wales here.

So we're going to go ahead and click Cronulla for units and then click on Add Market. Now, we can select statistics and get notifications when these statistics change. So the first one that I want to monitor is the DSR itself because that pulls from a lot of information. It's a really great reference point. So, here's the demand to supply ratio.

If I click on the Context, then I can see we're currently at 74, which is very heavily in the green. Basically, we can see Australian average of 59 here. So let's say I want to be notified when the DSR falls below 70. We can look at the history of the DSR here as well. We can see that the DSR has traditionally been quite good, but then has been above 70 recently. So, when it falls below 70, I want to be notified. Another thing that I want to be notified of in this case is the Average Vendor Discount.

If we look at the history of the Average Vendor Discount, we can see it's usually around the 4%-5%. Then, went up to between 5% and 6% and then dropped dramatically recently. But, a few months ago, it was actually negative and it now seems to be going up. So I want to get notified if it goes above 2%. So, if it rises above 2, then I want to go ahead and be notified. So, send me an alert whenever any of the above is true and alert me via email.

If I go ahead and click Save, I'm now monitoring this suburb and whenever the DSR changes and drops below 70 or if the Average Vendor Discount goes above 2%, then I can know, okay, something's happening in this suburb. I can then do more research to understand, is now the best time to sell? There's other data that you can look into, so let's go ahead and put Cronulla in again,