The Courier Mail this week published an article claiming that Brisbane’s property correction is nearing an end with FOMO [fear of missing out] likely to soon return:
The below quote from Brisbane-based buyers advocate Joanna Boyd sums up the thinking:
“Over the past months, we have observed what appears to be a ‘Mexican Standoff’ between sellers and buyers”.
“Sellers are still setting prices in their minds with figures that were being achieved six months ago, whereas buyers are not feeling as pressured to pay for a property above what they perceive to be the current market value.”
But Ms Boyd said that while FOMO had eased, it was likely to return in coming months as interstate migration for jobs and schooling opportunities ramped up again.
Talks of a near term recovery in Brisbane’s housing market are wildly optimistic.
CoreLogic’s daily dwelling values index shows that Brisbane home values are falling at a rapid pace, down 5.4% over the quarter:
Brisbane’s current price correction – 6.2% over just four months – is the steepest decline in CoreLogic records dating back to 1980:
Given Brisbane dwelling values experienced the nation’s largest (45%) price boom over the pandemic, and the Reserve Bank of Australia is certain to lift interest rates further, it is inevitable that Brisbane home values will continue to fall.
Gigantic price booms are typically followed by solid corrections, especially when they are met with sharp increase in mortgage rates.
