This is the moment I’ve been waiting for. The biggest property spruiker in town, the Real Estate Institute of Victoria (REIV), has admitted that house prices are set to fall! No, they didn’t say there would be an “easing in prices”, or an “improvement in affordability”, or “slower growth”. Yesterday, they announced that:
“Members report positive expectations for market activity in the March quarter at the same time as a drop of 3–5 per cent in the median house price is expected.”
What’s not clear is whether they are expecting a 3-5% fall over the quarter or over the entire year. It certainly sounds like the former. If so, and if that can be annualised, that’s a 12-20% fall over the year. They’ve become even more bearish than me!
Of course, they do regain their composure to finish with the obligatory spruik:
“The outcome of these factors is good buying conditions.”
Buyers – you’ve heard it from the REIV, start buying property – prices are about to crash!