- Has the property market peaked?
- Is Sydney in a bubble?
- Is there apartment over-supply in Melbourne?
The answer to these questions depends on where you look.
According to CoreLogic “Real home values have continued to surge in Sydney and Melbourne.”
The Reserve Bank has recently been trying to work out what is actually going on and concluded
“Recent data indicated that housing prices appeared to have grown modestly in the June quarter and had declined a little in most capital cities in July. Data on housing price growth from CoreLogic, … indicated that housing prices had increased very strongly in several cities in April and May.
However, new information had revealed that these growth rates were overstated because of changes to CoreLogic’s methodology; data from other sources indicated that housing price growth had instead remained moderate in the June quarter. Other information showed that, while auction clearance rates had recently picked up a little in Sydney and Melbourne, the number of auctions was lower than in the preceding year and the average number of days that properties were on the market had increased.”
So the answer is – it’s all correct. There is growth in some areas while others are declining. Some research shows growth, some shows plateauing.
“All boats rise in a rising tide” – but we are not in a rising tide; neither is the tide going out.
In instances such as this, investors are advised to do their research thoroughly – or even appoint a property buyer (such as for example, Metropole Property Strategists). That is the best way to know what is really going on.
Disclaimer: This article contains general information; before you make any financial or investment decision you should seek professional advice to take into account your individual objectives, financial situation and individual needs. Click for more detail regarding this disclaimer.