16th December 2008 / James Gladman: House prices up strongly over years

The property market can be unfamiliar territory for most home owners at the best of times, let alone in these uncertain days with global financial markets in upheaval, high oil prices and rising costs. So, when is the right time to buy or sell?
Should you wait for markets to improve, or sell now for fear that a worsening international scene could result in falling property prices?

Property News spoke to Fletchers Bellarine Director, James Gladman and asked him how he would advise vendors and prospective purchasers. Would he advocate holding off on selling or buying, or act now?
James says that firstly people need to put the property market in perspective. "Rather than see it in today's terms, where people are talking doom and gloom, let's try to see it in the long-term and to do that we need an historical perspective – not a short term point of view," James says.

"Quoting a Federal Government research paper, which clearly states that house prices in Australia have risen substantially over the past 20 years, far outpacing the growth in inflation, average earnings and household income.
"The paper relies upon data for house prices from 4 main sources: those produced by the Australian Bureau of Statistics (ABS), the Real Estate Institute of Australia (REIA), the Housing Industry Association/Commonwealth Bank (HIA/CBA) and Australian Property Monitors (APM)," he says.
"The paper warns that all 4 house price measures have disadvantages but overall the data is regarded as being reliable. The paper says established house prices have more than quadrupled in the past 20 years and house prices in Australia have increased substantially over the past couple of decades, both in actual and 'real' terms.

"Once you see the property market in such terms you appreciate that today's market and the diffi culties on the global financial scene are not of such great consequence. As such, Fletchers are still finding that there is demand for properties that are well positioned, appropriately priced, and are attractively presented.
"Even though the market has been quieter on occasions, we are confident now that Spring is here and with the recent interest rate cut by the Reserve Bank there is going to be increased activity in the forthcoming months," James says.

"As far as we are concerned the property market is still moving so now is the time to list. We strongly advise vendors to ignore all the negative media talk and have their home on the market and capitalise on the traditional Spring/Summer market that comes around each year.
"There is so much talk in the media about the stock market falling, high oil prices and an increasing cost of living that people expect things to be 'down'. However, the truth is the buyers are there providing we stick to the fundamentals. And, the fundamentals are simple," he said.

"Firstly, the property must meet the market – you need to be sure you're in the right price bracket. Secondly, good presentation is all important. First impressions are a major factor in real estate.
"And, thirdly, you need a marketing campaign that gives the property more exposure to the most important buyer catchment areas," he says.

If you are planning to deal in real estate on the Bellarine Peninsula, contact Fletchers for the best in responsible, professional advice.

– Fletchers Property Newsletter October 2008 Edition