Comrades have been asking me to update my property clock.
So here it is. It covers the new dwelling market, as I really don’t spend that much time in the established marketplace and so I have focused my attention on new digs.
I use these guidelines to help me position each market.
- Current housing market: the interplay between, and direction of, sales volumes and stock listed for sale.
- New housing market: underlying need to build more dwellings compared to the likely number of new dwelling completions over the next two or three years.
- Rental market: change in annual weekly rents versus vacancy rate trend lines.
- Coal face:are properties (that are correctly priced and well marketed) regularly selling faster than they would a year or so ago?
- Affordable:is the median value or rent affordable by at least half of the local market?
Improving markets don’t always automatic mean price growth. It means that sales might happen.
We are facing a different housing space over the next decade. If this is news to you, then revisit here.
So, if I place, say Brisbane, in a recovery phase it doesn’t mean that locals will sell for more money in a year or two than they would now. They just might be able to sell a bit faster than today and in some cases be able sell at all. Think 1990s.
There is always an X factor that affects the market. Past X’s include the Brisbane Flood; changes to FIRB or APRA constrictions and a recent X factor was the federal election.
I wrote late last year about 2019 being a year of two halves. Go here to read about that again. Boring!
Regardless of the time, some have the wrong product for the current (and/or local) active audience. You need to have the correct market match. We can help.
When it comes to most Queensland markets – underlying demand is rising, supply is constrained, and many joints are relatively affordable. But no “boom” is likely, but for mine, no housing crash is likely either.
Some markets and housing products are positioned better than others.
To find out what is going on in south east Queensland, go here.
Until next time,