Current Property Report: Why the next few months are critical for investors

While there was an overall decline in the Australian property market, not all regions are experiencing the same level of impact. Each state is at a different stage of the cycle, and within each capital city, there are various submarkets that are experiencing different trends.

Some areas are seeing a decline in property values, while others are remaining static, and some are still experiencing an increase in housing values.

This goes to the core of our Signature Portfolio approach, which seek to minimise risk by spreading (diversifying) your asset base across markets and housing product types.

Given the December headline inflation results were slightly higher than anticipated, and core inflation remains well outside the RBA’s target range, it seems probable that interest rates will rise again in February and possibly March. This could lead to a decrease in housing demand and prices in the near future.

However, as inflation may be reaching its peak, interest rates may not rise as high as some predictions from last year suggested. Once interest rates reach a stable level, as consumer confidence improves, we would expect to see a gradual stabilisation in housing prices.

At Ironfish, we stand by the philosophy that time in the market is more valuable than timing the market, especially in the long term.