Written on the 1st of December 2008 by Liz - Your Property Gurus
As Buyers Agents in the Queensland Real Estate Market we are privy to alot of information the general public never have the opportunity to access.
At the end of last month we were personally invited to a '2008 Year in review' and '2009 Market Prediction' hosted by Herron Todd White, Australias largest independent property valuation and advisory group in Australia.
The general consensus as reported by Herron Todd White, is that, although its been a trying year for everyone in the property market, Bribane has been the most resiliant to market forces due to interstate and overseas migration, housing shortages, and good employment figures. They stated that properties below the $500,000 mark haven't experienced a massive drop in sale price, just vendors now having more realistic asking prices, and still represents the best value for money in the Brisbane market. Properties at the lower end of the market in the $300,000-$400,000 mark were now travelling along quite nicely thanks to the drop in interest rates and the added incentives to First Home Buyers, with the added activity helping to push the prices up, we expect by $20,000 to $30,000 on what we are currently seeing, by the end of the first quarter of March 2009.
Heron Todd White didn't deny a recession occuring within Australia, however stated that it is v-shapped recession and the property market is now at the very bottom of the valley starting to make the climb out. They predicted that by March/April next year the market should be well on the road to recovery.
Another source to support these claims is a media release on the 28th November 2008 by RP Data, Australias #1 Property Information Source.
In brief, "Claims that the Australian property market would in 2008 experience a major downturn have been proven incorrect based on the most recent findings of the RP Data-Rismark Hedonic Property Value Index, which in October a gain showed that Australian capital city property prices had increased for the second consecutive month."
"Based on RP Data-Rismark Index results, RP Data head of research Tim Lawless believes that the doom and gloom merchants have misunderstood the fundamentals and the diversity of the Australian residential property market by predicting that Australia was headed for a market-wide implosion in 2008. Another point that was highlighted by both sources was the fact that "the market is in your head" and if you listen to the doom and gloom, you will talk yourself into a recession.
“The facts are that over the past 12 months Australian property values have declined by just 0.8 percent which is a phenomenal result when compared to the S&P/ASX 200 index which reported a decline of 40.5 percent,” Mr Lawless said.
“The October RP Data-Rismark Index results reinforce my suggestion that the Australian property market has moved through the bottom of its cycle.”
To read the Media Release in its entirity, "Nationally, property value growth is back in the black", please click here.
Even personally, we've found that our enquiry rates are up over the past couple of weeks and other people we deal with on a daily basis, for example, pest and building inspectors, financiers, solicitors have all commented that they are enjoying an increase in business.
For savvy investors the timing to enter the market is now better than ever according to RP Data’s Tim Lawless – “For investors who are willing to go against the flow, buying conditions are exceptionally strong and yields are improving every month,” he said.
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