With prices potentially bottoming out soon throughout Australia, buyers may see some excellent buying chances in the not too distant future.
John Edwards, CEO of Residex, says that, while some investors may be feeling gloomy about the downward trend in prices, he's actually feeling optimistic.
"I was more concerned this time last year than I am currently," he wrote in his monthly newsletter last week. "The government has put a floor under house prices with its actions with respect to the provision of the [First Home Owner Grant] and the Reserve Bank's reduction in interest rates."
In particular, he said the Sydney market is further down the path of adjustment than others and is primed for the "highest likely statistical growth over the medium term". A similar scenario is open in Melbourne, he said.
"This does not, however, mean that you can buy anywhere in these markets and be assured of a good outcome," Edwards said. "Some areas in these markets will make poor investments. A bargain in an area which fails to produce any growth and has a poor rental return is not worth having."
The latest Residex figures show Canberra, Adelaide, Hobart, Melbourne, Perth and Sydney all recorded negative growth in houses over the last quarter to this month. Darwin showed the best growth for houses over the quarter, still up 3.4%.
In units, Darwin again showed positive growth at 3.3%, beaten only by Hobart at 3.45%, while Canberra, Adelaide, Brisbane, Perth and Sydney all dropped in median value over the quarter.
