PHOTO: Australian Property Markets

The media is having a field day with gloomy house price forecasts, aren’t they? But what are our property markets really up to?

Well, it depends on which market you’re talking about, as some are performing much better than others. It also depends if you’re a buyer, a seller or a long-term investor.

Yes, our property markets are in a decline with Corelogic reporting that national dwelling values fell for the 16th consecutive month in February 2019, but the rate of decline is easing.

The current downturn is related to various factors, including:

  • Decreased investor activity, with local investors having difficulty obtaining finance due to the bank’s credit squeeze, at a time of higher supply of new and off-the-plan properties;
  • Fewer overseas investors due to financial difficulties as a result of us having pulled the welcome mat out from under them with increases taxes and fees;
  • Decreasing consumer confidence causing home buyers to go on strike; and
  • Uncertainty about the outcome of the upcoming federal election.