The smart approach to a market correction

First and foremost, as I pointed out in A POST A FEW WEEKS AGO, whilst the overall Melbourne median house price has dropped a few percent recently, that figure is still above where it sat at this time last year in many areas. Indeed, there are a number of parts of Melbourne that are clearly outperforming the Melbourne median, including suburbs like Thomastown and Lalor.

So, local property owners have every reason to feel quite confident in their local market. In fact, you’ve only got to look at some of the recent sales results achieved by our team at Barry Plant Thomastown, like last weekend’s auction which sold at $140,000 above the vendor’s reserve, to see the difference that good advice and a positive attitude can make to your results!

The other key element to keep in mind is that whilst we know that the market will inevitably experience small variations in the short term, (just as it always has historically), the underlying structural drivers of long-term growth remain in place. Population growth, an undersupply of new housing and the underlying growth of the national economy will all make their presence felt as time goes on.

Of course, the most important source of perspective of all, as we often remind our readers, is the “swings and roundabouts effect” of buying and selling in the same market. If the property market in your area has decreased in value by 5 percent, that will impact both the property you are selling and the property you are buying.

Hopefully, these thoughts will help you with your planning. But if you need more specific advice, don’t hesitate to give the team at Barry Plant Thomastown a buzz this week on 9466 3233.

We’re always happy to help.

Best wishes,

Con Constantinou

Barry Plant Thomastown