Investors could be running out of time to find a bargain, with Australian Property Monitors (APM) predicting the property market will pick up in 2012. Despite softer conditions in 2011, senior economist Andrew Wilson says the company’s quarterly House Price Report indicates better times are ahead.
“Early signs are emerging of increased first homebuyer and investor activity in most markets, albeit from a low base, that will help to encourage market activity and confidence,” Wilson says.
APM predicts Brisbane will be one of the first cities to gather momentum. Brisbane median house prices have fallen by 1.3 per cent in the June quarter and 4.9 per cent over the past 12 months. However APM says it’s unlikely there will be further drops and “buyer activity in Brisbane should increase as the reconstruction effort gathers pace, with prices starting to stabilise into 2012.”
Sydney and Melbourne also showed slightly better results over the last quarter. Prices in Sydney increased by 0.1 per cent, after falling 0.5 per cent in the previous quarter.
“In the June quarter, diverse local conditions had a more significant impact on median prices in each city, with these individual factors expected to have continued variable effects on growth in each market,” Wilson says.
“This is in contrast to the effect of national market conditions that have impacted prices across the board until recently. The prospect remains, however, of increased buyer activity emerging through the spring selling season.”
Source: API Magazine
Many people think (incorrectly) that you can only succeed in real estate when the economy booms.
In reality, poor economic times are great for real estate investors. You may find properties at deep discounts. You might also f ind deals that simply would not exist in a booming economy. Change brings opportunity.
Experienced investors and developers will always tell you: “you make your money when you buy”. That is a strong statement right now as this could be one of the best opportunities to invest before the economy picks up momentum.
To put it another way, watch the small video and see what Warren Buffet says… Advice from Warren Buffet
To understand how you can capitalize on property opportunities in today’s economy, call 612 9449 2333 to speak to an experienced Property Advisor to discuss your investment strategy.