Brisbane real estate maths: how upgrading now might save you thousands
When the latest home price data was released at the start of the month there was one interesting stat that’s not yet made headlines. Brisbane real estate outperformed Sydney. Yes, in the month of April our home values rose 0.6% while theirs were flat with no growth at all.
**queue loud applause, waving maroon flags**
Now we’ll keep that in perspective. This is one data set, produced by CoreLogic each month using algorithms and estimating. And even if that trend followed for a year we’d only see our prices rise a paltry 7.2%. The past year in Sydney, even with a flat April, saw prices rise by a mind-blowing 16%. The gap between our median home price and Sydney’s is enormous at 79%, so we really do look cheap. In many quarters we are hearing more optimism start to emerge about Brisbane’s property market, and especially our houses.
So if Brisbane is at the bottom of our market (and plenty of you will argue the point – and there are lots of markets within markets!) this would be the perfect time to sell if you’re wanting to upgrade. If the $500,000 home you’re selling rose even 10% while you’re thinking about moving then you’ll gain a further $50,000. Easy maths. But the $800,000 home you’re wanting to move up to? It’s risen a further $80,000 – so the delay would cost you an extra $30,000.
There’s an awful lot of pride involved in home ownership and we understand the sentiment that you “need” a certain price before you can sell. Even if you’re buying cheap, accepting a cheap sale can be tough. Sometimes selling at a tiny profit or even a loss is just too hard for our clients to accept. Even when the maths is fairly clear.
You might be that one great property oracle who can forecast the market with laser precision. You might be able to pick the bottom of the market, and make your move as it turns. Most of us can usually only spot that turn with 20/20 hindsight.
Buying a home, buying any real estate, is a long term decision and if we allow the stats-watching and forecasting to overwhelm us, we’d never move. Regardless of prices, home buyers are always looking to buy and sellers are always looking to sell. There’s an opportunity to make your move whenever you’re ready.