The headlines are saying ‘property downturn,’ and yes, things are changing, but a nationwide newspaper story isn’t necessarily relevant to the suburb where you live.
Take a more detailed look at what is happening with house prices around Australia in 2022:
Capital city house prices
The media talks about property prices going backwards and the numbers change constantly. However, if you look at figures for the June quarter of 2022, only Sydney and Melbourne went backwards.
In every other capital city, average prices were still on the rise in April, May and June.
Check out these statistics from domain.com.au:
Sydney: down 2.7%
Melbourne: down 0.9%
Brisbane: up 0.2%
Adelaide: up 3.6%
Canberra: up 1.8%
Perth: up 1.4%
Hobart: up 0.8%
Darwin: up 0.3%
These statistics are based on quarter-on-quarter (QOQ) figures. QOQ compares property values to recent quarters (three-month cycles). Next quarter’s figures may be very different but we are now heading into the spring selling season, when there will be plenty of activity from buyers.
If you look at the year-on-year (YOY) figures, every state has gone up, some by more than 20%.
Local property prices
Instead of reading the general headlines, take a look at what is happening in your area. You can do some basic research online and speak to a local real estate agent for more detailed information.
If you’re in a sought-after area, you could find prices are holding strong.
The natural property cycle
The property cycle is in perpetual fluctuation. If you find yourself worried by the headlines, it helps to take a step back and look at the bigger picture.
Yes, there is a slight property ‘glitch’ at the moment in some parts of Australia, but this is not significant when you look at the unprecedented growth of the past few years.
All the statistics point to the fact that property always goes up when you look at the Year on Year statistics. Core Logic numbers have shown that in the 25 years between 1992 and 2018, house prices rose 412%. That’s why property is one of the safest bets when it comes to long-term investing.
Should you sell right now?
Sometimes you simply need to make a move and selling your home is the only way to do so.
Selling when prices are ‘settling’ is not necessarily a bad thing. You may get lower than you ask for but if you are also making a purchase, you could potentially save money as well.
Consider that property prices work in percentages. If you lose 10% when selling a $500,000 apartment but upgrade to a house worth more than a million, you’re still the one who is getting the better deal.
The other thing to remember is that prices will always rise eventually. If you have a plan and sit tight, your investment will increase in value.
Need to sell? A quality real estate agent will always help you to get the best price for the current market.
