Aussie Home Loans boss John Symond hit a nerve when he warned national TV viewers to be cautious of the housing market. He told Channel Nines Sunday program that the housing market is coming off and will continue to come off.
Generally speaking, for the average mums and dads out there, I think the price of real estate today will decline, and continue to decline, over the next couple of years, Mr Symond said.
But three of Australias leading banks said that they did not anticipate any major change. CommSec chief equities economist Craig James said there was little to justify a fall in housing prices. Mark Bouris, head of rival Wizard, said he Mr Symonds was scare mongering. REIA President Ian Wells said the Institute said anecdotal evidence suggested the housing market was having a pretty soft landing.
How do you interpret these conflicting comments? Symonds has a point, especially when looking at the inner city apartment market and the investment market, particularly in the Harbour City.
Local Agent, Sam Pennisi says that this is not the case in Moonee Valley.
“Our office results show that the market is very balanced. There are plenty of buyers and prices seem to be holding since the slight market correction about 18 months ago. Our results are good and we have plenty of vendors and buyers who are delighted with our service. Agents across greater Melbourne share the view that the long-term view of property is very healthy.”
“If people are fearful about the market, I suggest that they should speak to us about their propefrties”, Mr Pennisi said.
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