For as long as anyone can remember the topic of property prices has always been a major conversation piece around the BBQ or office morning tea, but today the discussion takes on a new level of hysteria, especially if you are renting or buying.
While time in general history is often measured as B.C. (before Christ) time when discussing property prices is also measured as B.C. but in this case meaning before Covid.
The Covid epidemic is blamed for turning the property market on its head and from today’s perspective the epidemic in soaring and fluctuating house prices continues with no sign of changing any time soon.
Throw in strong inflation and we have a perfect storm for soaring property prices.
Figures released recently by Prop Track Home Price Index make startling reading especially if you are in the market for a home, either renting or buying.
Brisbane home prices are up 51.4% compared to pre Covid prices but the news is better (or worse depending on perspective ) in Regional Qld where the increase is 55.3%.
If the price increases are not enough for first time home buyers then the acute shortage of houses for sale or rent is another major cause for concern.
If you think these issues only exist in Brisbane and the other capital cities then think again because Allora property market faces the same issues.
Allora prices are on the increase with a similar problem of limited to no homes for sale.
Rents have increased along similar lines, that is, if you can find a home for rent.
Sheridan Ruhle of Properties Ruhle said Allora is a “hot spot” for sales with demand outstripping supply and confirmed that there are no rental properties available at the present time.
Trying to determine when the real estate market might return to normal is difficult if not impossible to determine.
The equation is complicated by the nation’s current high level of migrant intake, the Reserve Bank’s use of raising interest rates to curb inflation and the building industry’s slow rate of overcoming the national shortage of houses.
A very good crystal ball is needed to determine when the property market will cool down and return to something approaching normal.
This article appeared in the Allora Advertiser, 18 October 2023.
