The property market so far this year has seen some major changes to house pricing. There was an article recently on PerthNow stating 14% of home owners are selling their properties for less than what they paid for them. This shows how the lack of urgency from buyers is resulting in the lowering of prices being offered and therefore sale prices. Rental prices have also fallen but the last two weeks has seen an increase in enquiry rate on our properties.
We need to forget the old model that properties double in value every 10 years. I still meet people now who have the same house value as they did in 2007. It’s very common and can’t be helped. The prices in 2007 were fair, but lots has happened in the last 9 years. When buying we need to look at maximising money making ability and also keeping an eye on what future growth could be like in the area you purchase. Real Estate buying isn’t a sprint, it’s a marathon so stay patient and the positive growth will be back.