Most property investors aren’t concerned with the current state of the market, with many believing that the worst of the price falls has already come and gone, a new report has found.
Detailed in ME’s Household Financial Comfort Report, when investors were asked what is likely to happen to the value of their property in the next 12 months, 89 per cent expect to see values increasing a lot, a little, or remaining around the same, at 18 per cent, 34 per cent and 34 per cent, respectively.
Similar trends were noticed when looking at specifically Sydney and Melbourne, which recorded 85 per cent and 90 per cent of investors respectively believing values will not decline in the year ahead.
ME’s consulting economist Jeff Oughton told Smart Property Investment that while investors might be a little more optimistic than they should be, the general sentiment is that the worst has come and gone, and most are waiting to ride out the current correction rather than viewing the market as crashing.
“They’ve already fallen significantly and they’re looking for a bottom in the property market over the next year … and I think that’s a reasonable forecast,” Mr Oughton said.
“There’s still downward pressures there, but there’s no traditional triggers of any crash.
“The great bulk of investors have made a lot of money over the last 10 years and are happy to ride out a correction.”
Mr Oughton’s message for investors in the current buyer’s market is to be alert, but not alarmed.
“At the moment, you can still see prices falling, but they’re looking for some turn around, generally over the course of this year with the vast majority thinking things could end up higher at the end of the year than they are now after the correction of the last year so,” he said.
“Keep watching, because if you are looking for more property, there could be a buying opportunity here over the next six months or so.”