I keep checking house sales on a weekly basis, and despite the doom and gloom of job losses and poor economic growth etc….the suburb I live in seems to have jumped in value considerably. Some being sold for about 100K above what they would have been valued at a year or two ago (I am basing on similar houses to mine in same area). I expected a drop or stagnant price value in Victoria based on all the crap happening in manufacturing and retail sectors.
Has anyone else noticed any difference??
Hi Kat
That's property for you – it's not made up of one market but thousands of smaller ones across the country. So whilst one area might be in decline – another close by might be on the increase. There's plenty of reasons for it – some suburbs experience gentrification, some receive a boost in infrastructure, the list goes on.
HTW produce a report each month which does a pretty good job of tracking market movements across the country – it's available here
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi kat which suburb are you from?
I see prices dropping still, but the number of sales has picked up.
Spikes in the odd burb tends to fool many investors in to thinking they can capture these rises if only they could predict where they'll come up next. One off lifts in a burb are almost impossible to predict with any certainty and the rise doesn't usually carry much momentum over time if it's not on a fairly broad basis. I've seen hot burbs do well for a few years then stagnate for the next ten.
In this type of market simply because prices are low or slow doesn't necessarily mean money isn't looking for a home. Burbs can go hot if that money suddenly finds a focus for whatever reason.
The best insight I can give you on the current movements in the markets comes from my experience in collectibles. When the market was hot .. people would largely buy anything and everything that had Star Wars written on it. When the market eventually slowed down .. they became more selective and only sought after the desirable and 'key' pieces in the series.
That seems to be what has been happening in property at the moment too. People have taken a step back on a lot of their property and made the actual assessment of what they have purchased and whether due to infrastructure and facilities .. neighbors … lifestyle … the position they have chosen has any merit for longer term investment.
The key areas .. the good positions .. the neighborhoods with a strong set of facilities, these are the ones that are steadily moving ahead at the moment.
As I state readily .. there is no singular property market as such. There is a statewide market .. a locality market .. a suburban market. And each of these is split into apartments, land, commercial and industrial components.
At any time, DEPENDING ON EXISTING CONSUMER DEMAND, any or all of these sectors can be active and flourishing depending on needs and requirements.
Interesting to see, I am in Mulgrave VIC.
An option we were seriously considering was to change our PPOR into IP and purchase another…..we seriously need to upgrade but I feel the cost of rebuilding is worth us pursuing instead. But that just means a delay in buying an investment property
jenni_nextplace.com.au wrote:I see prices dropping still, but the number of sales has picked up.Where would that be? Not Sydney! Things are moving along very nicely here thanks.
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