Century 21: Bubble talk ‘misguided’

Century 21 believes warnings that the Australian property market is overheated and developing into a real estate bubble are misguided.

 

“If the Reserve Bank was to unexpectedly raise interest rates steeply, it may look like we’re approaching ‘bubble’ territory,” said Chairman and Owner of Century 21 Australasia, Charles Tarbey.

 

“However, despite strong growth in Australia’s capital city dwelling values, these only sit 7 per cent above the previous market peak and have only grown by 4.5 per cent over the past ten years.

 

“To me, this clearly demonstrates that the market has experienced a market correction over the past twelve months and is not approaching ‘bubble’ territory as hypothesised by some market commentators.”

 

A recent Fairfax Media survey revealed that few economists think the market is suffering a bubble or likely to crash and most expected the Reserve Bank cash rate to stay at, or near, current levels until halfway through next year.

 

“Continued stability in interest rates is good news for anyone looking to purchase the property this spring,” said Charles Tarbey.

 

“However, I would caution homebuyers to carefully budget for the effect any interest rate fluctuations could have on their finances,” concluded Charles Tarbey.

 

Century 21 encourages potential buyers that are looking to purchase real estate to ensure they have obtained the appropriate professional property and finance advice before doing so.

Posted by Charles Tarbey on 02/09/2014 at 12:00 AM | Categories:

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