We have never thought that there is a bubble - that is not to say however, that they're aren't upward pricing pressures and in some cases they are getting "toppy" in some markets/suburbs. Moreover, we are pretty silent generally and have been for some time with our commentary because there are more than enough points of view about property as well as vested interests being pushed on the property reader - we aren't experts, we are professionals, and there is a difference...worth thinking about!
We thought it was worthwhile re-publishing and discussing the table below, given the buying depth across the core Sydney markets and the price growth that has been recorded month on month since May 2013.
We are often asked, "is this a good time to buy property?" our answer...it is always a good time to buy when you are ready - factoring in your hold strategy and your cost of ownership (including future interest rates rises for example); speculation about where property prices will be and if they will come down is not a discussion worth having because it is crystal balling and yes, there will always be a correction 'cause markets have peaks and troughs - its always about asset selection and value versus price (where does it not make sense to you and at what level are you overpaying against the purchasing strategy and your own affordability?) this is why we are here, to sort the wheat from the chaff!
The following table shows capital city house prices from their last peak. Sydney for example had its last (total market) peak in prices 10 years ago. They initially dropped 21.2% and currently sit at only 4.3% higher after adjusting for inflation over the same period, that's less than half of 1% of average annual growth over the past 10 years. There are other variables like capacity, LVR's and so on but, they don't change the numbers regarding property prices as tabled. Apart from Sydney, the rest of the capitals have experienced real value deductions since their more recent peaks...arguments about asset values will persist however, this is interesting in the context of the market we find ourselves in now...
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To see the full article from RP Data's Research Blog click here
We thought it was worthwhile re-publishing and discussing the table below, given the buying depth across the core Sydney markets and the price growth that has been recorded month on month since May 2013.
We are often asked, "is this a good time to buy property?" our answer...it is always a good time to buy when you are ready - factoring in your hold strategy and your cost of ownership (including future interest rates rises for example); speculation about where property prices will be and if they will come down is not a discussion worth having because it is crystal balling and yes, there will always be a correction 'cause markets have peaks and troughs - its always about asset selection and value versus price (where does it not make sense to you and at what level are you overpaying against the purchasing strategy and your own affordability?) this is why we are here, to sort the wheat from the chaff!
The following table shows capital city house prices from their last peak. Sydney for example had its last (total market) peak in prices 10 years ago. They initially dropped 21.2% and currently sit at only 4.3% higher after adjusting for inflation over the same period, that's less than half of 1% of average annual growth over the past 10 years. There are other variables like capacity, LVR's and so on but, they don't change the numbers regarding property prices as tabled. Apart from Sydney, the rest of the capitals have experienced real value deductions since their more recent peaks...arguments about asset values will persist however, this is interesting in the context of the market we find ourselves in now...
To see the full article from RP Data's Research Blog click here
