How Far Are House Prices Going To Drop? | Property Investing

Pumped On Property · How Far Are House Prices Going To Drop? | Property Investing

According to CBA house prices in Sydney and Melbourne are expected to fall over the next 6 to 12 months.

The reason house prices are expected to fall is due to sentiment (the way people feel about the property market) and interest rates (according to Core Logic there is little to no correlation between raising interest rates and property price declines).

The Australian government provided huge fiscal stimulus in 2020 and 2021 which resulted in lavish spending, extremely low unemployment rates and the inflation of assets like property.

This is why the Reserve Bank of Australia is now raising interest rates and why house prices in some of Australia’s more overvalued property markets are declining.

A very similar pattern occurred in late 2017 when the Australian government made it difficult for banks to lend money. At the time house prices in Sydney and Melbourne declined temporarily by between 10 and 15% and then rebounded once confidence and demand came back to the market.

I think this period will be short-lived and once the Reserve Bank begins to cut interest rates again (the Reserve Bank is publically stating it will begin to cut rates again by the middle of 2023) the average Australian will be rushing back into the property market.

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Simon

07:19 10 Oct 18

I thoroughly enjoyed working with Kristal, Ben and the Pumped on Property team. They were incredibly efficient and made it easy to purchase an investment property with confidence and without needing to traveling interstate. The reports of potential properties provided each week were incredibly detailed and this made it easy to make a decision. Kristal guided me through the entire purchase process and went above and beyond to answer all the questions I had. Since visiting the property and area I am very satisfied I made a good purchase in a high quality area, and consequently was able to find tenants quickly. They also assisted with the design and build of a granny flat, which is in progress. I would definitely recommend them to anyone looking to buy in the Brisbane area and am looking forward to working with them again.

nick .v

21:28 25 Oct 18

Working with the Pumped on Property team was an amazing experience, From our first conversation with Simon in the first strategy session to the purchase of our first investment property and the process in between! Its great to do business with genuine passionate people and you can really tell these guys do care and treat you as individual investors with your own unique goals. If you haven't already, check out the Pumped On Property YouTube channel where Ben puts out some great free information every week! I would highly recommend working with this team, no matter if you are new to property or even if you have a few properties yourself, they will provide thorough reports and advice on areas you may otherwise miss! Once again, thanks to Ben and the team for helping my wife and I get our foot on the property ladder

Mitch F

09:25 26 Sep 18

Having dealt with another buyer’s agent prior to Pumped on Property and having a very negative experience I was dubious about approaching another business. After watching a few of Ben’s video’s on youtube my wife and I decided to reach out and give it another try. We are so glad we did. The difference was night and day from the previous company we went through. We dealt mainly with Ali after our initial sessions with Ben and these guys don’t just talk the talk they walk the walk. They are thorough and well educated in what they do and most importantly they genuinely care about helping you. At any time we had questions they were readily available to talk. They take the vast amount of information and help you break it down to what’s relevant and understandable. We already had one investment property prior to working with Pumped and have just bought our second through them and we have no reservations about recommending or dealing with them again. A huge part of investing in property is surrounding yourself with like-minded people and these guys are just that. If you’re feeling unsure whether it’s worth working with a buyer’s agent or not then you’re in the same boat we were 6 months ago. Beware not all buyer’s agents are the same, I spoke with 3 before going to Pumped and as I stated earlier paid the fee’s to work with one before terminating our dealings with them simply because over a period of just over a month we discovered they didn’t have our best interest at stake. Dealing with Pumped they were transparent at all times and integral with their dealings with us. We didn’t just get property put forward to us, we got a lot of education about the whole market and process. Wealthy investors utilise the help of property experts, so if the best are using them, then I will too. That was our mindset anyway. And these guys are definitely experts. ‘If you want to be successful, find someone who has achieved the results that you want and copy what they do’ – Tony Robbins

Conrad John

04:25 03 Nov 18

Follow these guys. They are pro's and providing me great direction

Greg Shrimpton

04:41 08 Oct 18

Highly professional team and great to deal with. I highly recommend Ben, Kristal and the team if you are looking for a buyers agent.