Fluctuations in Brisbane’s House Prices Normal

According to the information released by Real Estate Institute of Queensland, a 3.3 Per cent drop in the cost of Brisbane’s median houses, was expected. This fluctuation suggests that investors are not able to anticipate the future cost of properties they buy. It may be beneficial to them in the long run, but in the short run it may lead to losses.

The institutes’ Queensland Market Monitor revealed that the value of median houses reduced to $580,000 in first quarter of 2015. The group chief executive officer, Antonia Mercorella, said it’s a reflection of calm quarter in high rated property, and not an overall reduction in the market.

The seasonal last quarter of 2014, where the price reached $600,000, also played a crucial role according to the words of Mercorella. Analysts attributed this to poor level of affordability in this city driving buyers further away to Ipswich and Logan.

As compared to December 2014, where the sale was robust, this drop was not highly expected in the month of March. The price has eased since December but may fluctuate later on within the year. Prices that are determined by forces of demand and supply are the best since they are not subjected to any controls.

Experts in this industry are expecting low interest rates, while growth in dwelling places to continue rising. The government is expected to crack down on dodgy foreign investors to make this industry more dynamic.

Information from the report indicates that at the end of financial year in March 2015, there would be increased in confidence that the value of house would rise to 7.2 per cent in comparison to last year. After observing the 12 month trend to March, the price of median houses was $587,000, giving a more actual reflection selling price in the market.

This result was experienced due to increasing sales activity, especially for houses found in the outer suburbs with new development and amenities. The CEO said that Griffin, Petrie and Kallangur suburbs of Moreton Bay benefited from new railway line that have improved means of transport to residents of those areas.

The relatively affordable units and urban houses in Redcliffe area, with median value of about $305,000, is a nice starting point for investors and home owners. Buyers are becoming frugal and are more concerned about return on investment and interest rates as compared to affordability.