My blog from last year can be found HERE and as we are now exactly 12 months on, I wanted to take stock and see what ‘actually happened.’

*Source: Cannstar, Core Logic

Although across the board prices declined over the past 12 months, the statistics show the fall in property prices was nowhere near the 40% decline some of the so-called property experts predicted. Core Logic data shows that the nation’s annual growth for the 12-month period to 31^st August 2019 was -5.2% and a total return of -1.5% when accounting for rental income. Not quite the 40% decline reported on the 60 minutes segment.

The two biggest Australian property markets, Melbourne and Sydney seemed to have turned the corner both showing positive returns of 1.8% and 1.9% respectively for the three months to the end of August 2019.

In addition, auction clearance rates that at one stage were dwindling below 50% have consistently been up above 70% in recent months.

What has caused the shift? The market has responded positively post the federal election result, lower interest rates (that appear that they will be getting even lower), tax cuts and an easing in lending standards.

What is the main lesson to take from all this? Firstly, don’t act upon sensationalist media reports. As I said 12 months ago if you are planning to buy or sell a property, do your research, understand the market and make an informed decision. I have heard stories of people “waiting for the market to fall” before purchasing a property. I wonder if these people are still waiting as some parts of the market already appear to have turned the corner. It is almost impossible to predict markets.