Subdued property activity natural: REIA

Subdued property activity natural: REIA

20 April 2011 by Staff Reporter 0 comments

Staff Reporter

House price attrition is natural part of the property cycle, Real Estate Institute of Australia’s president David Airey has claimed.

“It is important to understand that house prices, whilst increasing over time, have periods when price growth either subsides or decreases, however, over time the fundamentals are there for continued growth. The drivers for this growth will come from lack of supply, population growth and changes in the household formation rate,” Mr Airey said.

Mr Airey said the low activity levels should be seen in the context of the increased buyer levels during 2009 and the earlier part of 2010.

"The temporary slowdown in housing price growth can be attributed to a number of reasons.

"Including a more conservative outlook by home buyers, increased savings reflecting an aversion to debt and seven interest rate increases in the last few years,” he said.

“In addition, the decreased activity can be attributed to a retraction of first home buyers from the market – the group which provides the catalyst for other buyers to tradeup.”

 

Staff Reporter

House price attrition is natural part of the property cycle, Real Estate Institute of Australia’s president David Airey has claimed.

“It is important to understand that house prices, whilst increasing over time, have periods when price growth either subsides or decreases, however, over time the fundamentals are there for continued growth. The drivers for this growth will come from lack of supply, population growth and changes in the household formation rate,” Mr Airey said.

Mr Airey said the low activity levels should be seen in the context of the increased buyer levels during 2009 and the earlier part of 2010.

"The temporary slowdown in housing price growth can be attributed to a number of reasons.

"Including a more conservative outlook by home buyers, increased savings reflecting an aversion to debt and seven interest rate increases in the last few years,” he said.

“In addition, the decreased activity can be attributed to a retraction of first home buyers from the market – the group which provides the catalyst for other buyers to tradeup.”

 

promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2016

With a combined sales volume of $13 billion in 2016, the Top 100 Agents ranking represents the very best sales agents in Australia. Find out what sets them apart and learn their secrets to success.

featured podcast

featured podcast
REVEALED: The 10 best agents in Australia for 2017

For the first time ever, the top 10 agents in the REB Top 100 Agents ranking are revealed in this exclusive podcast. ...

View all podcasts

Are dodgy agents being punished enough?

Yes (8.6%)
No (55%)
Only in some states (2.3%)
Not all dodgy agents are being found out (34.1%)

Total votes: 220
The voting for this poll has ended on: April 15, 2017
Do you have an industry update?