Property Market Update – 3 July 2019
You know the relief you feel when you take off a tight piece of clothing? That’s kind of the relief the real estate market is rejoicing about because property prices are reported to have stopped falling – unless you live in Darwin where they’re still in a deep decline.
Core Logic have released their June 2019 data series with the headline that “Sydney And Melbourne Housing Values Edge Higher In June, But Values Still Trending Lower On A National Basis”.
Rather than just looking at dwelling values, I prefer to look to the fineprint of the data to see what’s happening to house prices given they’re the biggest component of what’s driving property prices.
Source: CoreLogic Home Price Value Index Tables (www.CoreLogic.com.au)
As you can see above, there’s a lot of red on the grid, and I can’t see it showing any kind of real estate bounce as yet.
Aside from the stats, I’m now hearing stories almost daily of trades slowing down, people in construction being laid off, valuations coming in lower than expected, etc.
Remember that real estate is not like the stockmarket. Whereas the latter can turn around quickly, real estate is like an ocean liner that takes a long time to change direction. Let’s hope it’s not the Titanic!