RCR Finance Bulletin # 12 - Friday, 11th July 2008

House Prices Plummet.....OR HAVE THEY?

Here is an excerpt from a recent report that crossed my desk that I thought may interest you....................

Australian house values experienced the largest quarterly fall in five years during the March quarter, according to REIA’s "Real Estate Market Facts".

A recent report showed the "weighted average median house price" dropped by 2.7% over the quarter to $458,488.

The weighted average "other dwelling median price" (i.e. units and townhouses) also fell by 2.7 per cent to $355,297.

Whilst the quarter’s results highlighted a market in decline, houses and other dwellings still achieved annual growth of 8.3% and 8.2% respectively .................(well, well, well!).

The continuing shortage of rental properties also saw rents rise in all capital cities over the quarter.

Reading between the lines it would be fair to say that investment in property be it as owner occupier or investor over the longer term is still a fantastic investment, and that despite occasional corrections in the market, we should always look outside the square at the big picture that historically, property values have tended to double every 7 to 10 years.........THIS IS WHERE THE REAL MONEY IS MADE!.

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