Another month down and here we are edging the cusp of Spring!
Over the month of July, we
Here’s the truth surrounding our market now. The royal commission is certainly influencing our industry (and your property values also) however this is necessary to prevent another crash similar to that of 2007/2008 (yes… prevent). Contrary to belief, we are not actually in a ‘crash’ as such, merely a simple market correction. While we are seeing some locations endure a larger correction than others, we are not seeing enormous industry reductions or repossessions as you would see if we did enter a state of emergency.have seen a huge mix of emotions relayed by the media about the real estate industry such as fear of crashing markets, the frustration of tightening lending conditions and anger towards the cybercriminal community for targeting the real estate industry… however, there is still a lot of positives to our current market.
Within capital cities, we have seen a correction in Sydney with property prices falling up to -14% in some areas, however as an average, Sydney has only corrected a mere -7.4% this year. Looking at the prices entering the end of 2017 we could all see that Sydney was a false economy which was heading for a correction at some point, that time is now. This correction is a slow burn and will continue its path until price stability has been achieved. This is not the behaviour of a market crash as some would have you believe, it is a natural process which will continue to happen throughout our lifetime as history has shown (the 4 stages of the property market).
Looking outside of capital cities though, something a little different is happening where we are seeing majority of the cities going through an increase (some upwards of 13%!). Newcastle for one has increased a healthy 5.5% this year and is continuing to see growth surrounding all the new development and sub divisions coming through the pipeline.
BUT WHY IS THIS NOT ADVERTISED? As frustrating as it is, this question can be asked with no real answer… only speculation, however it is important to understand that while some markets are in a correction, others are in progression. It’s very important to understand the market you are in by doing your research and seeing the statistics yourself.
The reality of our market is unfortunately not clearly advertised; however, we are still in a healthy growth pattern, just not at the same pace as we once were. It is crucial more than ever to have a well-educated agent (and skilled negotiator) on your side to help you combat the false perceptions which can only hurt your property price.
A structured process and a well organized campaign paired with the skills of a professional negotiator are what will make the difference between an average result and a life changing result.
Well I hope this has been an eye opener for you and has spurred you into doing your own research before making real estate decisions. Until our next edition of The Real Deal, we hope that everyone enjoys their time and helps out our farmers which are doing extremely tough 😊