As we have seen in recent months, the prices of property have dropped in many parts of the country. In the Newcastle and Lake Macquarie region, the average decrease in the median price is currently 8.8%, since the peak of the market. (Corelogic – Dec 2022). So, obviously, many people are asking the question, “When is the best time buy?”
Timing the market has always been a challenging game to play and no one has a crystal ball, although many media commentators try to have a go, and many get it very wrong. Predicting the bottom of the property market is usually only observed 6 months after the fact, and by the time the data starts to show this, the boat has already sailed.
If you are in a position to buy a property in Newcastle, Lake Macquarie or the Hunter Valley, whether that be an investment property, first home or next home, the question shouldn’t be about timing the market, but “time in the market.” Getting in the market, when you can, will always trump trying to predict the best time to buy. Just ask the person who delayed buying back in early 2020 when some of the media predicated a 30% drop in property prices (prices increased 47.7% in the Newcastle and Lake Macquarie market in Covid to Peak time – Corelogic 2022.). Many of these people who hesitated to buy property back then are now regretting it. But even those who bought at the peak, won’t regret it if they play the long game.
If you look at a graph showing the average price of property across Australia over the past 30+ years, you will notice more peaks than troughs. Yes, property prices do fall or re-correct, but history shows that being in the market and having a long-term approach, will always result in a long-term gain.
If you want to make the most of these long-term gains and try to minimise the risk of any deceases, the key is purchasing the right property for the best price. Not every house is the same and every house won’t increase in price the same as others. There is so much to know about buying property in today’s market. Buying the right house at the best price is what we do at Open Doors Buyers Agent.