Speaking to Real Estate Business in a video interview, CoreLogic RP Data senior research analyst Cameron Kusher said Melbourne’s recent downturn is an anomaly.
“I don’t necessarily think we will continue to see ongoing falls in that market,” Mr Kusher said. “However, I think it is a trend in certain other areas.
“Our view is that over the next 12 months, markets like Perth, Darwin and Canberra are going to be quite weak, and potentially, you will see values lower than they are at the moment 12 months in the future.
“There are definitely signs that the market has now passed through its peak level of capital growth, and some areas are more exposed to a downturn than others.”
So should agents be telling clients to list now, before prices fall further? It depends what market you are in, says Mr Kusher.
“At the moment, particularly in markets like Sydney and Melbourne, we are finding a big lift in the median sale price, which suggests that a lot of the stock coming onto the market is at the higher-priced end of the market,” he said.
“So maybe, particularly given that income growth is so low, that provides the opportunity for people looking to sell at the lower end of the market to capture something that's not being tapped.
“I wouldn’t like to make a blanket statement that people should buy now or sell now – it is an individual thing and you really need to look at the data and determine where the opportunities lie.
“Even if a market is slowing, there are still opportunities to successfully buy and sell real estate,” he added.
To see the whole video, click here.