You know how they say nobody rings the bell to tell you that the market has hit the bottom? Well I’m ringing the bell! I’m about a year late but property prices have definitely already hit the bottom of this cycle and they’re on their way up.
The most recent official Australian Bureau of Statistics data tells a very interesting story. This is the price index of established houses.
The areas highlighted show when property prices hit their lowest point after the initial impact of the GFC.
According to the information above, the bottom of the property market was in:
- December 2011 – Sydney
- September 2012 – Melbourne
- June 2012 – Brisbane
- September 2012 – Adelaide
- September 2011 – Perth
- December 2012 – Hobart
- June 2011 – Darwin
- September 2011 – Canberra
For the overall Australian market, the bottom was between the end of 2011 and the beginning 2012. Before you all jump for joy, look a little bit closer!
Even though all capital city prices are on the way up, not all property prices are above their previous high. Sydney, Perth and Darwin have record high property prices but all the other capital cities still have a little way to go before they pass their previous peak.
What does this all mean? It doesn’t mean that we are completely out of the woods yet. Yes, the worst is over but in my opinion we still have a little way to go before we can all breathe a sigh of relief.
Historically low interest rates will ensure that we won’t have to wait too long before property in all capital cities regains all previous losses. I forecast that all capital cities, with the possible exception of Hobart, should have new record high property prices sometime during 2014.
Then we can all jump for joy!
By Peter Koulizos, property lecturer and author of The Property Professor’s Top Australian Suburbs www.thepropertyprofessor.com.au
Read More: http://www.apimagazine.com.au
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