Sales prices are okay
It’s hard to write an attention-grabbing headline with words like “okay” and “normal” but that’s the best way to describe our view on the current sales market in Brisbane’s inner city. The luxury end might be a bit wobbly but for most property owners there are good results to be had if they sell.
There are buyers about, they are cautious, but where they see something they want they are making reasonably quick decisions and they are paying reasonable prices. It’s rare to hear of something selling cheaper than it might have done a year or two ago. Similarly we haven’t witnessed too many record-breaking results. Prices are okay and probably nudging up slightly.
One ‘typical-ish’ recent result: we sold an apartment last week for $45,000 more than its owners had paid just two years ago, a 13% gain.
So why then do some people say it’s not a good time to sell? Maybe because we’ve become so used to high growth! Researchers RP Data wrote an interesting report on the changes to Australia’s median prices over the past thirty years, and specifically looked at the gains in 5 year lumps. Our house prices jumped a whopping 13.9% per annum from 2000 to 2005 and then a solid 7.5% pa over the past five years.
So the “I’ll wait til my price jumps another $50,000 before I sell” approach is tempting. We’re in denial that the market might have returned to a period like the 1990’s when we had 2.8% per annum growth from 1990-95 and 5.2%pa from 1995 to 2000.
Every real estate agent prays for another boom, but worn as our knees might be, we’re still getting on with making sales and helping our clients move on with their plans.