The property market moves quickly, with new data every week, month, and quarter.
With this in mind, it’s a good idea to step back and look at the factors that influence the property market in the first place.
Finance brokerage and property advisory founder Bushy Martin points out that property should be assessed over the long-term, and each property market moves through “a gradually increasing ‘S’ curve cycle”.
While there has been plenty of coverage on falling house prices across the nation, this must be put into perspective, says Martin.
“While Australian property values have dropped 5.6 per cent nationally over the last 12 months, this correction is both normal and expected when considered over the longer term.”
CoreLogic figures show national property values have grown 19.4 per cent in the last five years and are actually up nearly 200 per cent in the last 20 years, he pointed out.
“It is clear that property will continue to be the best investment you can make, even when performance has its variations from time to time.”
So what are the trends that will influence the Australian property market over the next decade?
Martin predicts the average national housing growth rate of 6.8 per cent over the last 25 years will continue – and that’s a conservative estimate, he said. It means a property worth half a million today could be worth $965,000 in a decade.
“The Australian property market will continue to grow strongly in scarce, high demand areas over the next decade.
“To be successful you just need to ensure you are buying at the right time of the cycle in that location.”
As prices bottom out in pricier suburbs and cities, now is the time to buy property if you can afford to, Martin urged.
Full article originally published on Yahoo Finance June 28, 2019.