This video discusses a very popular question I get asked a LOT!
In it, I talk about what I think will happen in the (Melbourne) real estate market in the next year.
This video segment was pulled from a long interview I did back in Feb 2022, where I answered a heap of frequently asked questions (FAQ) about real estate.
Once you’ve watched the video, let me know your thoughts in the comments below.
Note: The video was filmed in portrait mode rather than landscape, which is why it is narrow rather than wide. For the best viewing experience, I recommend you click the Full Screen mode button.
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Okay. If we look at everything logically because we can only look logically.
There is no fact. The crystal balls broke into millions of pieces in 2020 and they have not been glued back together.
From October last year, so October 21, I was saying that we knew the market, conditions were going to be fairly stable until the end of the first quarter, so March 2022.
We’ve now got some interruptions that are going to happen.
Do I believe that we are going to have a crash? No.
Are we going to plateau and soften off? Yes.
Is there going to be longer of days on market? Yes, because the process will still be the same.
There are still going to be buyers there. It’s just going to take a little bit longer to bring everybody together onto contracts.
Because don’t forget, even though we’ve got, interest rates are going to go up a little bit. That’s going to happen.
Elections are going to happen. Two of them in Victoria, for Victoria this year.
But the international borders just opened. We are going to see an influx of international arrivals who have been waiting to reunite with their family members. Who have been waiting to get into our good country and take up career positions and jobs.
Housing is always, always in demand in Australia. We love houses, but fortunately so do the people coming into the country, they also need somewhere to live.
So things are going to stabilize a little bit but there is always going to be demand.
Now, when you talk the apartment market and you talk housing market you are talking two totally different beasts.
Don’t get caught up into the popular opinion of the auction rate determining what the market is doing.
Don’t get pulled down by the apartment debacle. Apartments and homes, as in free standing houses, are very, very different items.
And the markets perform very, very differently in our area for that.