When the headlines don't mach the reality

Headlines like the one above, which appeared in Saturday’s edition of ‘The Age’, are a prime example. Yet when you look a little closer at the detail, it is clear that not only does the headline not match the overall content of the article, it doesn’t match the reality of the current market either!

For starters, headlines about a ‘sober outlook’ seem a little odd when you realise that the article quotes Alan Oster, who is the Chief Economist of the National Australia Bank. Mr Oster’s forecast for the coming year is that “the Melbourne market would still grow by about 5 percent this year”!

So, let’s look at that prediction:

1. It is just one prediction, and last time we checked, no-one at NAB has a crystal ball;
2. This is a forecast from a Bank – an organisation that is required to be conservative;
3. Last year we saw house prices increase by 13.9 percent;
4. So, most people would probably be hoping that the growth would slow a little;
5. A 5 percent growth rate will still outpace inflation and the interest rate on your mortgage!
6. That’s hardly a sober outlook, is it?

Having put these headlines in perspective, it’s also worth taking a look at the reality of what is currently happening in our local market as well.

Whilst we are only two weeks into the New Year, our team at Barry Plant Preston has been pleasantly surprised at the strength of buyer activity so far in 2018. We have seen some impressive attendances at several of our Open Houses, with first home buyers and upgrading home owners making up a large majority of the interest. Importantly, these buyers have shown a willingness to make solid offers and seem to be approaching the market with a great deal of confidence.

One thing is clear, we have started the property market of 2018 even more strongly than we did in 2017, which is very good news for anyone planning on selling in the coming months.

Remember, if you would like a confidential discussion about your options for the coming year, or some advice from someone who really knows what is happening in the local property market, feel free to give one of our team a call.