Will Property Prices Rise or Fall?

This is the number #1 question that we are asked every day and unless we had a crystal ball that worked or a futurist time machine… no one can answer this question definitively.

Major banks and a wider scope of national companies are investing millions every year into employing economists, actuaries, and data analyst experts to track and monitor historical data and trends, as well as a diversified scope of other information to try and predicate what the market is going to do. Worldly economic factors and market conditions can and are changing the course of the property market.

We all experienced the unexpected break out of Covid that many thought would cripple the property market, yet it resulted in a rise in property prices across many areas.

There is the well-known seven-year property cycle that many base their investment forecasting on, yet we have seen a more diversified shift to this theory in recent years.

If you want to know if property prices will rise or fall you need to be aware of the contributing factors and more importantly, do your research or connect with experts, who can share this information with you.

Contributing Factors:

• Location, location, location, and property characteristics.
• Economic factors.
• Supply & demand and vacancy rates.
• Average and medium price fluctuations.
• Government policies and regulations.
• Infrastructure and building development.
• Natural disasters and climate risks.
• Global and National economic conditions.
• Technology advancements.

All these factors can interact in complex ways, leading to fluctuations in property prices over time.

To assist you in understanding the property market we have shared below a reminder of the real estate cycle that has been referred to for many years.