Market Report

The RBA is predicting inflation to peak by this coming Christmas

1 November 2022
by Dee Pajevikj

The media reports about the real estate market continue to be relentlessly negative.

You’d almost think they lacked diversity. A dominant narrative in any reportage can often delude people into behaving as if the media knows what’s coming next. Thus predictions of as much as 20% falls in the market have caused some buyers to get tangled in the entirely speculative narrative of the press and to wait for potential bargains – thereby missing out on the opportunities on offer now.

real estate journalists tend to focus on the short-term

Because it’s an easier chunk of time to analyze and understand, you’re less likely to be wrong about it, and the nature of news is that today’s fact/factoid is sexier than any greater, more enduring truth. So the short-term becomes a journalist’s default area of expertise, their comfort zone. And the longer term (Which, as anyone with an IQ higher than a beagle’s knows, is considerably more pertinent for any real estate investor.) is largely ignored. If the long-term weren’t ignored, the news on real estate would be good.

At Abercromby’s we’ve observed that volumes are down due to the already mentioned predictions, but are not continuing the downward trend, they have stabilized rather than dropping further. The last week of October saw a flurry of sales by Abercromby’s, suggestive of a late spring surge. Spring, with its air of rebirth, will always bring roses and buyers out, no matter how much rain or doom is in the air. It offers a reminder that the future is there waiting for the brave.

Despite rain that would’ve started Noah rounding up critters, we are achieving some excellent sales results, in particular for quality properties. The eternal truths may not be eternal, but they do hold up in the long-term; good real estate will always sell well.