Can You Really Predict The Real Estate Market?

Predicting the real estate market

People love to predict the real estate market – where it’s going, how low it’s is going to go, or high it will rise. Everyone wants to know if they are in the selling phase should you get on the market right now so you can make the most out of the boom before it turns, or buyers want to know should they hold out for another six months to see where things are to see if prices will drop.

If you are wondering how to predict the real estate market to try and stay ahead of the peaks and troughs, this video will provide you with some insight of a real estate agents perspective on forecasting the market.

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Working as a real estate agent means being in the real estate market every single day, engaging with buyers and sellers, and the realisation is that you cannot predict what is going to happen with the real estate market tomorrow.

Influences on the real estate market

Essentially, the real estate market is not just how many buyers or sellers are are present in the market.

Economic factors, interest rate changes, banks increasing interest rates even though the Reserve Bank of Australia hasn’t are just a few elements to consider in the real estate market.  Any increase in day to day living expenses, such as increasing petrol prices can put financial stress on people, which causes a flow on effect to the market. The unemployment rate will affect the market, along with any changes to industries. These types of concerns will impact on buyer confidence.

The GFC was the last major decline in the real estate market, and it was not foreseen. It is very difficult to speculate on the real estate market, as there are so many factors that play a part in influencing market conditions.

Should you wait to buy? 

If you are looking at buying a property and you expect to stay in there long-term, it really does not matter what is happening in the market today. In 10 years time, it won’t matter if you bought when it wasn’t at the bottom of the market, or if it was rising, and you may have paid more than what you thought you would’ve wanted to, because in 10 years time the property is going to look cheap.

Property is always growing, and it has continued to do over time. We can pretty much put our money on the fact that property will always return in the end. Property will go down and it will go up – just like the share market. Business Insider shows the historical bumpy increase that the Australian house prices has taken.

Don’t try to pick the market. If you find the house that you want, don’t delay. Buy the one that you want. Don’t try and think, “I’m going to be picking the market.” What you really want to do is to pick the house.

I hope that has helped you today, but if you have any questions whatsoever I’d love to talk to you. My number is 04 26 264 771 and I look forward to talking to you soon.

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