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Where are the bargain properties?
With property price declines in all capital cities except Adelaide and Darwin, logic says the housing market must be littered with bargains. But it ain't necessarily so.
"A bargain can always become a better bargain in 12 months time," explains SQM Research's Louis Christopher. "Like the sharemarket, property is never priced too high to go higher, nor too low to go lower."
The problem with "falling property prices" is that not ALL property is falling in price and neither are all suburbs. In fact, lower-priced properties are keenly contested thanks to the first home buyer grants. That means bargains can be hard to pick.
Australian Property Monitors' chief economist Liam O'Hara says it's more likely that bargains will appear in Australia's well-to-do suburbs, where home owners have higher debt-to-income ratios because they were allowed to borrow more during the good times.
Landmark White head of residential valuations Bill Fatouros says a buyer has definitely snagged a bargain if they have paid 30 per cent less than 2007 prices.
Domain.com.au
With property price declines in all capital cities except Adelaide and Darwin, logic says the housing market must be littered with bargains. But it ain't necessarily so.
"A bargain can always become a better bargain in 12 months time," explains SQM Research's Louis Christopher. "Like the sharemarket, property is never priced too high to go higher, nor too low to go lower."
The problem with "falling property prices" is that not ALL property is falling in price and neither are all suburbs. In fact, lower-priced properties are keenly contested thanks to the first home buyer grants. That means bargains can be hard to pick.
Australian Property Monitors' chief economist Liam O'Hara says it's more likely that bargains will appear in Australia's well-to-do suburbs, where home owners have higher debt-to-income ratios because they were allowed to borrow more during the good times.
Landmark White head of residential valuations Bill Fatouros says a buyer has definitely snagged a bargain if they have paid 30 per cent less than 2007 prices.
Domain.com.au
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