Well, that didn’t take long! Hot on the heels of a few media reports that a couple of property market commentators have been forecasting a cooling in the national property market, (particularly in cities like Sydney and Perth), it seems that the figures are saying something entirely different.
We need to keep in mind that whilst some people have tipped a slowing of the rate of growth in the national property market, along with a possible drop in property values in one or two specific areas, most people have still been predicting continued growth in the Melbourne market, if at a slower rate than the record growth we have experienced in recent years.
However, the anecdotal reports we have been receiving from agents around Melbourne is that buyer demand in the New Year has been very strong, surprising some observers.
This impression has been borne out by an analysis of CoreLogic and Domain data by Macquarie Bank, which suggests that not only has any localised price drops in some areas stopped, but that nation-wide property prices have begun to rise again.
These findings were revealed in an advisory note to their investor clients, and were reported in The Australian Financial Review this week. The note has been quoted as saying, “It is now looking very likely that housing prices at the national level are again rising modestly.”
Whilst the data from both Domain’s APM and CoreLogic’s RP Data is based on the fairly thin volumes that are common at this time of year, both sources are showing that the national property market has begun rising modestly.
Further quotes from the Macquarie Bank advice included an understandably cautious note that, “We do not expect a repeat of the 2016 bounce back in housing price growth.”
Keep in mind that the Melbourne market is expected to outperform the national property market in 2018. However, if you are curious to know just how much more your own property could be worth after the strong growth in prices in recent years, why give one of the team at Ian Reid Vendor Advocates a call on 9430 0000 today? Of course, you can also get your FREE copy of our booklet, Fatal Real Estate Traps Exposed, while you’re here.