According to a few different real estate agents that I’ve spoken to this week, real estate prices are starting to fall in Brisbane suburbs. It’s nothing dramatic, and I don’t think it will become too serious, but prices are definitely slipping. One agent from the bayside said that some homes had fallen $50,000, whilst another agent from the western suburbs said that properties in her area had also dropped.
I think this is a good thing, and I don’t think the agents mind it either. Yes, real estate agents like to see property prices going up, if only because it means their commissions are going up as well. But in the current market some homes are spending far too many days on the market, and for Mr and Mrs Real Estate Agent, that makes for a long time between drinks. No sales means no pay cheque, and they’d prefer to see properties moving than staying still, so if that means a price drop then I don’t think they’ll be complaining.
Provided you’re buying and selling in the same market, slight price drops be a problem. I think people have become a little too accustomed to the boom days, and they forget that small falls and rises used to be a normal part of real estate. What we’re experiencing now isn’t that unusual.
So don’t be afraid to take the plunge – put your home on the market if you feel like a change. Just be realistic about your sale price and you’ll be ok.
Update: July 31, 2008
Brisbane property prices officially dropped by 1.3 per cent during the June quarter, and Michael McNamara from Australian Property Monitors reckons they could go further:
“I think it’s inevitable that this trend will continue and we could see something in the vicinity of a further 10 per cent drop in Brisbane in the next 12 months.”
– Australian Property Monitors
Just a few weeks ago the ANZ was talking about the “mother of all housing booms”. What happened to that?