Wednesday, June 10, 2009
Aussie property market wrap - May/June!
I have recently come across numerous online news articles, magazine articles, TV news pieces and I'm surprised I haven't seen it on public toilet walls yet, but it appears that everyone is of the opinion that now is the time to buy.
The Australian property market is still in a state of flux in my opinion. House prices are dropping, there is no doubt, but I can now fairly confidently say that even the lower cost suburbs are feeling the pinch. The sheer number of properties for sale across this crocodile infested land of ours is, at best, alarming, and I get the feeling stock isn't moving. Take my local area as an example; when I go to the "sold properties" section of realestate.com.au, the local agents are averaging about two/three sales per month across the whole town!!! That is not very good clearance rates and I have to say, a lot of these agents must not be having KFC for dinner, rather opting for a boring home cooked cup of rice instead.
You see, this is the problem. Things are looking very doom and gloom from some angles. And then again, you read articles like this, and once again, my brain has trouble understanding just what the hell is going on (although I must say this is not a very difficult to do to my brain just recently)! Maybe it's just my markets that I'm involved with, of course I definitely do not see the "complete" picture and if anyone tells you they do, they're full of little brown chicko babies.
So, at this time, I am still not stating that we are in a recovery. Do not listen to the optimists, do not listen to the doom and gloomers, just listen to everyone and listen to no one. That is all you can do. Finally, it is still only May/June. It will take a few more months, let's say around late October that the picture will start to unfold, a vision for the next 3-4 years become clearer and the time when real estate agents can once again return to buying KFC.