blog.buysellrealestate.com.au

According to a few different real estate agents that I’ve spoken to this week, real estate prices are starting to fall in Brisbane suburbs. It’s nothing dramatic, and I don’t think it will become too serious, but prices are definitely slipping. One agent from the bayside said that some homes had fallen $50,000, whilst another agent from the western suburbs said that properties in her area had also dropped.

I think this is a good thing, and I don’t think the agents mind it either. Yes, real estate agents like to see property prices going up, if only because it means their commissions are going up as well. But in the current market some homes are spending far too many days on the market, and for Mr and Mrs Real Estate Agent, that makes for a long time between drinks. No sales means no pay cheque, and they’d prefer to see properties moving than staying still, so if that means a price drop then I don’t think they’ll be complaining.

Provided you’re buying and selling in the same market, slight price drops be a problem. I think people have become a little too accustomed to the boom days, and they forget that small falls and rises used to be a normal part of real estate. What we’re experiencing now isn’t that unusual.

So don’t be afraid to take the plunge - put your home on the market if you feel like a change. Just be realistic about your sale price and you’ll be ok.

According to the latest data from Australian Property Monitors rents continue to go up across Australia, and this is causing severe stress for many families. According to the Queensland Council of Social Services, even families with full employment are finding it tough, with some families forced to part with over 50% of their household budget just to pay the rent each week.

Ordinarily when rents start to get too much people will make the jump to home ownership, thereby lessening demand on the rental market. But in the current climate interest rates are so high that many renters simply can’t afford to take out a mortgage.

“The combination of Generation Y leaving home, strong migration patterns and a weak building sector is intensifying demand.

“The shortage of affordable accommodation will no doubt add to the growing number of displaced renters who cannot afford to live in well-located areas.”
- Australian Property Monitors general manager Michael McNamara

Rents continue to be well below property prices, and it looks like they would have to rise at least another 20 per cent, based on current real estate prices, before rental prices and property prices are on par with each other. The one positive is that property prices are falling, quite dramatically in some places, and that may be the one saving grace.  If real estate prices go down, then property investment might become appealing again.

Amalgamated Property Group is set to begin construction of its $80
million luxury beachfront apartment project following approval by the
Gold Coast City Council.

Mirvac’s $130 million Waterline-Bulimba development has won the award
for best residential subdivision at the Queensland Urban Development
Institute of Australia Awards. 

A survey by information website, firsthomesaver.com.au, has found 75% of young Australians believe that housing
affordability is going to worsen over the next five years.

Adviser Edge has released its July property update, identifying key
concerns for investors with forecasts for the commercial and
residential property markets in 2008 and 2009.