Scott's Weekly Column

Housing market myths

It always makes me cringe when newspapers or television shows start reporting on the “Australian housing market”.

I think the recently retired CEO of the Commonwealth Bank, Mr Ian Narev, summed it up best below in a recent address to an economic forum in Sydney:-

“Mr Narev started by noting the disparity in real estate markets across the country, saying: There is no such thing as the Australian housing market. Australia has about 2,000 housing markets. And the market within a five-kilometre radius of where we are now [in Sydney] or within a five-kilometre radius of the CBD in Melbourne has very different characteristics from what you might see in other parts of those states, or indeed in other parts of the country.”

Mr Narev is 100% correct, if you want a true understanding of a real estate market that you are looking to buy into or sell out of, then talk to the local real estate agents, valuers, mortgage lenders, architects and builders etc.

These are the people with their “fingers on the pulse” who can tell you what the market is doing in their local area and why its performing the way it is. Every market has local factors that are positively or negatively affecting prices and the supply and demand for each local area, and you won’t find the answers in the national newspapers or television current affairs shows!

Have a great weekend!