Lately I have speculated regularly about the state of the economy and the impact of this on the real estate market, but that's not really surprising when it seems to be many people's favourite topic of conversation. More to the point is the fact that when there is uncertainty, people seek out information to reassure themselves, or at least to remain informed. There is much being written on the state of the real estate market, and at Century 21 we are committed to keeping our customers informed, particularly at a local level where it impacts our customers most.
When you look at the information at hand, it is difficult to deny that the Australian economy has suffered in recent times, and many economists have stated that the country has actually been in a recession since last year. That obviously impacted on the real estate market, however house prices have actually held up reasonably well, and when compared to the share markets, property has put on a much better performance. Further good news is that none of the gloomy predictions of a staggering 40% drop in property values have come to fruition.
Although in a recession property prices do struggle to begin with, history shows that this makes way for bigger gains to follow. In the not so distant past, namely during the 1980s and late 1990s, we saw this happen. Property prices stagnated for a while, but then began to recover, and when that recovery did commence, it did so with an enormous force and resulted in double-digit growth. What that means is if you are in a position to consider it, this is the best time to set yourself up for that impending growth. There are bargains to be found, and suburbs that have the potential to reap up to 50% growth in the next few years. Talk to your local Century 21 agent about your property options so you can make the most of the current property situation.