Summary
Current trends in the housing market reveal significant challenges, with property prices declining and transaction volumes dropping by approximately 20% compared to last year. Cameron Cusher, a property economist, emphasizes that many potential sellers are hesitant to enter the market, hoping for a price recovery that may take years. This uncertainty raises the question of whether individuals should act now or risk missing opportunities while waiting for a market rebound.
Cusher notes that recent interest rate hikes and changes to property tax treatment have negatively impacted buyer confidence, particularly among first-time buyers who aspire to become investors. He points out that traditional house price indices may not accurately reflect the current market conditions, as they often rely on outdated sales data. Instead, he suggests monitoring real-time indicators such as new listings, total stock on the market, and the average time properties take to sell for a clearer picture of the market's health.
Looking ahead, Cusher predicts that the housing market will face ongoing challenges due to high interest rates and affordability issues. However, he believes that long-term fundamentals, such as strong net overseas migration and a persistent housing shortage, may eventually drive prices upward. He advises potential buyers to focus on asset selection and to be aware that the pace of appreciation may slow compared to previous years.
Show Notes
Is Australia's property market really performing the way the headlines suggest? In this week's FUNdamental Friday, Ben Thompson sits down with independent property economist Cameron Kusher to unpack what's actually happening beneath the surface of today's housing market. From interest rates and buyer confidence through to property data, sales volumes and long-term housing fundamentals, Cameron explains why the widely reported numbers don't always reflect what's happening on the ground. The...
More from The Property Couch
What happens when property prices stop going up? 🏠 For buyers, it might feel like an opportunity. For homeowners and investors, it can raise a very different question: what does this mean for my wealth? But the impact of a property slowdown can reach much further than the Aussies simply buying and selling. In this week’s episode, Ben is joined by independent property economist Cameron Kusher and economic futurist Evan Lucas to discuss the changing property market, the p...
Think back to your very first interaction with money. Not your first job or bank account, but the first time it was physically in your hands. For most of us, it probably went something like this: you were a toddler, you found a coin, and you put it straight in your mouth. An adult pulled it out and said: Don’t do that. Money is dirty. Obviously, they were talking about germs. But it’s a fascinating example of how early the language around money begins. In this week’s Throwback Tuesday s...
Most people don't avoid insurance because they think it's bad. They avoid it because they'll "get around to it later." In this episode of Friday Fundamentals, Shane sits down with insurance specialist Don Glendinning to bust some of the biggest myths surrounding life insurance, income protection and personal cover. They unpack why so many Australians delay getting insurance, what can happen when unexpected events strike, and why even basic cover can be better than having none at all. Whether ...
What if the property that solves your cash-flow problem today creates a much bigger problem tomorrow? 🚨 With property investors reassessing their next move, high-yield apartments and commercial property are attracting attention. But behind the attractive numbers, are buyers asking enough questions about asset quality, vacancy risk and who will eventually buy the property from them? In Episode 620, Lachlan Delahunty from Follio returns to join Ben for a post-budget follow-dis...
Ask most people what financial freedom looks like and you’ll get a number. A portfolio size, a passive income figure, a date on the calendar. Michael Kemp answers it with three words instead: friends, family, freedom. In this week’s Throwback Tuesday snippet, Michael (author of The Ulysses Contract) explains why he sees money as a pool of capital rather than simply a way to buy things... and why the goal is to live off the harvest, not the farm itself. Plus: the 2,300-year-old Greek philosoph...