Your Property News July 2022

For many, property is as “safe as houses” when compared to the share market. The property market doesn’t fall by 5% in a day wiping billions in value. Generally, the property market hasn’t fallen more than 10% over the long term. (CoreLogic).

Over the last 12 months, the Brisbane housing market has seen an increase in value by 34.5%. In June, we saw that market come off by 0.3% after the first of the interest rate rises. Since March 2022, interest rates have increased from 0.35% to 1.35% with potentially another 0.75% prior to the end of the year. The aim of any interest rate rise is to reduce the amount of money in the economy, not reduce house prices.

Whilst we are concerned with the now and how our home values will be affected in the long term, lets look at the last 6 years. The largest fall in the Brisbane House Price Index was in March 2019 down 1.5%. Since September 2020, the House Price Index has been in positive territory peaking in December 2021 at 10.8%.

For context, interest rates in 2016 were 2%. In the 2007 property boom, interest rates were 6.5%. (Source: ABS)

If we compare the property market to the stock market, the stock market has fared a lot worse since the beginning of the year. Whilst we might not all own property, we all own shares either directly or indirectly and/or we work for a publicly listed company.

The length of time we own our home has increased from 7 years to 12 years. So, whilst we may be concerned with buying at the top of the market and prices may come off, let’s remember that we will be living in our home for 12 years on average. Buy and sell in the same market and your risk will be minimised.

As we always say – the right time to buy and sell, is when the time is right for YOU.

If you are looking to buy, invest or sell, please reach out as our door is always open – You are our focus.

Amanda
Amanda Butler – Principal
0438 767 439