{"id":100145,"date":"2025-01-06T09:49:30","date_gmt":"2025-01-05T22:49:30","guid":{"rendered":"https:\/\/en.econostrum.info\/au\/?p=100145"},"modified":"2025-01-06T09:49:32","modified_gmt":"2025-01-05T22:49:32","slug":"national-housing-prices-drop-for-the-first-time-in-two-years","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/au\/national-housing-prices-drop-for-the-first-time-in-two-years\/","title":{"rendered":"National Housing Prices Drop for the First Time in Two Years\u2014Is Your Investment at Risk?"},"content":{"rendered":"\n<p>After two years of skyrocketing <strong>house prices<\/strong>, the real estate market might finally be cooling off, according to industry experts. In a recent blog post, <strong>Aaron Scott<\/strong>, founder of property tech app <strong>bRight Agent<\/strong>, dropped a bombshell prediction: the \u201csubstantial growth\u201d that has defined the housing market won\u2019t last.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Property Investors Warned: \u201cIt\u2019s Dangerous to Assume the Boom Will Continue\u201d<\/h2>\n\n\n\n<p>Scott didn\u2019t mince words when addressing property investors, urging them to consider alternatives to real estate. \u201cThe real estate market is definitely softening\u2014especially from an investment point of view,\u201d he cautioned. Citing signs of weakness in major capitals and slowing growth in smaller cities, he suggested the days of easy gains are behind us.<\/p>\n\n\n\n<p>\u201cIt\u2019s dangerous to think that just because property has been hot over the past year and a half, that it will continue to be so over the next year or two,\u201d Scott warned.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">National House Prices Dip for the First Time in Two Years<\/h2>\n\n\n\n<p>For the first time in two years, national <strong>house prices<\/strong> declined, with <strong><a href=\"https:\/\/www.proptrack.com.au\/products\/property-data-and-insights\/\" target=\"_blank\" rel=\"noreferrer noopener\">PropTrack data<\/a><\/strong> reporting a <strong>0.17 percent drop in December<\/strong>. Leading the downturn were Melbourne, with a monthly decline of 0.53 percent, and regional Victoria, which saw a sharp 2.49 percent decrease.<\/p>\n\n\n\n<p>Scott explained that the rapid rise in real estate prices over the last 18 months has been a classic case of \u201c<strong>mean reversion<\/strong>,\u201d where prices return to their long-term average. \u201cHigher prices will weaken somewhat while at the same time cheaper places will increase in value,\u201d he said.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Perth\u2019s Real Estate Market: A Double-Edged Sword?<\/h2>\n\n\n\n<p>One standout market defying the national slowdown is <strong>Perth<\/strong>, where prices surged by 17 percent in 2024, with a 0.39 percent increase in December alone. Once stagnant for a decade, Perth\u2019s affordability has made it an attractive destination for buyers, sending prices soaring.<\/p>\n\n\n\n<p>However, Scott warned that mean reversion is a double-edged sword. \u201cAs Perth property values increase, they get less attractive at the same time, and prices will inevitably slow,\u201d he explained. He also advised against assuming future growth will mirror the past two years.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What\u2019s Next for Property Investors?<\/h2>\n\n\n\n<p>For those banking on real estate for quick returns, Scott\u2019s message is clear: <strong>proceed with caution<\/strong>. As the market recalibrates, investors may find it harder to replicate the gains of recent years. The softening market dynamics might force them to explore other, less risky opportunities.<\/p>\n\n\n\n<p>While the real estate party isn\u2019t over just yet, the days of wild growth appear to be fading. Will investors heed the warning, or will they gamble on a market that\u2019s losing its sizzle? Only time will tell.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The real estate boom that fueled skyrocketing house prices might be running out of steam. For the first time in years, national property values are slipping, with surprising drops in major cities.<\/p>\n","protected":false},"author":5,"featured_media":100153,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[],"class_list":["post-100145","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-housing","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33","no-featured-image-padding"],"_links":{"self":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts\/100145","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/comments?post=100145"}],"version-history":[{"count":7,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts\/100145\/revisions"}],"predecessor-version":[{"id":100152,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts\/100145\/revisions\/100152"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/media\/100153"}],"wp:attachment":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/media?parent=100145"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/categories?post=100145"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/tags?post=100145"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}