Property news: what you need to know this week
After nine months of decreases and stagnation, it's hard to find some positive news out there, but we'll try. Here is the roundup for the week. First up, making sense of the current situation from Small Caps, and a reminder that we are experiencing a correction. Despite the continued drops,
"It is important not to exaggerate the falls though – national property prices are still 32.4 per cent higher compared to five years ago."
And more importantly,
"If there is one positive that is still driving fundamentals in the property market, it is a population that is rising faster than expected."
Despite the above, it seems that a lot of people are expecting further fall, explaining the lack of action in the market at the moment, a sentiment also echoed on news.com.au this week:
"The reason for the slowdown is clear. With house price falls in the news, buyers are holding out for even lower prices. Why buy now when things could cost less later? At the same time, sellers are frightened of putting their house on the market unless they absolutely must."
There is one thing for certain. Despite some calls that now is a good time to buy, investors are definitely in hibernation. But, potential buyers shouldn't keep holding out. As this article in Your Property Investment states,
"For those with the resources, it is definitely a good time to buy. As housing supply diminishes, though, prices are likely to be more resistant to drops."
If you are looking to invest, check out this article:
The closest areas to the Sydney CBD the article is citing are areas such as Liverpool and Fairfield. Just a reminder, we still have some last minute bargains available close to that price in Canterbury, just 10 kilometres away from the CBD. Get in touch if you would like to know more.
Have a great week!