Price Growth Loses Momentum!!

MomentumAustralia has a number of major property markets, mainly centred around the various capital cities. Then there are markets within each state. Even in the capital cities there are different markets.

So, I find it somewhat confusing to hear things like “…. Real estate in Australia is booming”, or “.. Price growth loses momentum”.

When economists and experts make these broad ranging statements they are invariably talking about the major markets in Sydney and Melbourne.

For them, anything outside Sydney and Melbourne may just as well be on the moon. It’s understandable in one sense, but it can also give a false impression as to what is actually happening in the real estate marketplace.

Nonetheless, it seems that the trend in values in the March quarter declined compared to the December quarter 2013. For example, growth in Perth values fell by 2.2% compared to the December quarter producing an overall net increase of 1.1%.

This seems to be a current trend nationwide. So where is the market heading post budget?

From what I am hearing around the traps, most people (business in particular), are expecting slower spending in the short term as consumers ie; you and me, get used to the spending cuts and tax increases in the Abbott budget.

Another significant factor for the future of the property market in the medium term is the reduction in the threshold for stamp duty exemption for first home buyers from $500,000 to $430,000.

For first home buyers this effectively means an increase in property prices on homes over $430,000. This will no doubt make it even harder for first home buyers to enter the market.

Having said all that, there is always somebody buying and selling in any market at the right price. More so now than ever it is very important to price your home to the market if selling and if buying, maybe lower your sights and buy within your means.

Interesting times ahead!

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