With every new ‘ping’ on my phone, I get a story from a real estate expert predicting the market. I’m reminded of the old joke: “Economists have predicted six of the last two recessions.” And it’s not just the eocnomists firing off opinions, they’re coming from everywhere and it’s not uncommon to read one story about a boom followed by a story on a bust.
My advice is to forget the noise.
If you’re buying, rather than try to pick the market, I recommend evaluating why you are buying and what you can afford. Factor in all the costs and consider that interest rates move.
Talk to a broker and get a good pre-approval.
Think about why you are buying. If it’s to live in long term, then understand it’s more about the property than the market conditions.
Once you have a budget and a plan, consider what you want in the property and the community you’re going to live in. I like to do a ‘Greater Region’ search on realestate.com.au. It will show you all the places you can buy in the city or town, and you can filter by price range, size etc.
Tip: Buy in an area near schools, transport, hospitals or shops etc. This means jobs for families and will always attract buyers.
An area that is getting some new infrastructure (like an Olympic city!) will most likely attract buyers once built, so buying there will likely see an uplift.
Finally, remember if you’re buying with a long-term plan, then the current market movements matter less. Holding off buying because you think it might get cheaper could be a very costly mistake if you’re wrong.