Trying to work out the state of the property market is not easy when there are so many conflicting messages in the media. If you’re like most people you’re probably a little confused with what’s happening in the property market right now. When it comes to property it seems that everyone has an opinion. There is no consensus from the major property research groups either.
The four big research houses have recently released their quarterly house prices and guess what, they all differ. The Australian Property Monitors (APM) reported a 1.6% increase in median house prices for the June quarter whilst Residex reported a 1.3% fall in prices. The revised figures from the REIV show a 2.9% increase in prices for the June quarter, whereas RP Data – Rismark reported a 3.1% fall in prices over the same period. According to RP Data – Rismark’s monthly calculations June recorded a 1.4% rise after sharp price falls in April and May. Their figures show that the trend of rising prices continued into July.
With so little consistency in the data, establishing a conclusive opinion about the direction of market prices remains difficult. There is no doubt the volatile global economic situation impacts market confidence in Australia. But smart investors know that volatility represents opportunity.
Negative market sentiment does not affect a fundamentally good investment, it simply provides an opportunity to pick it up at a temporarily more affordable price.
I realise that although in the short term there are some challenges ahead, there are also many opportunities.
While the doom and gloom market sentiment might tempt many to adopt a wait and see approach, professional property investors realise that a sluggish market can represent opportunities to buy for long term holding. It is the long term factors that drive their property investment decisions.
From a local area perspective there are signs that the property market is turning the corner in Moonee Valley.