As we embark on another working year following the Christmas and New Year festivities and feast of public holidays, the predictable predictors are out in force trying to forecast which way property prices are headed over the next 12 months.
So far we have heard that house prices will fall by 40% or increase by 10% and everything in between. So take your pick, you have just as much chance of picking the Melbourne Cup winner!
Have we become a nation obsessed by house prices? If you already own a home do you really care whether it goes up in value? After all one would presume that you purchased it for the purpose of providing shelter, right?
Everywhere I go, someone is asking me what the market is doing. I suppose everyone has an interest in real estate in that we all need to live somewhere. But we are constantly bombarded with economic information and commentary viz, the stock market rose by 5 points today because … or the stock market fell by 15 points today because….(same reason).?”>#@$%??
In real estate one source will say prices increased by 1.2% last quarter and another will say prices fell by 0.3%. Who is right? Do we really care? If you need a house to live in and can afford it, just go out and buy one.
It doesn’t matter if the market is going up or down, everything is relative and as long as you have a long term time frame (minimum of 10 years) there is virtually no risk.
Enjoy you home, that’s what it’s for!
Back to predictions. I may as well throw my hat in the ring, so here we go: I predict that in 2013, house prices will either increase, decrease or stay the same!
Happy 2013!!
About Bernie Kroczek
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