On this page you can find all our content related to the Australian Housing Market. This includes Australian housing market news and analysis, property market data and charts as well as our housing market forecasts.
A common question many of our readers have is: Will the Australian housing market crash?
To answer this, we will run you through how we think about this question here at Profit Watch.
The Australian housing market operates on a cycle — and once you understand this cycle it becomes a lot easier to make smart investments in the market.
It all comes down to land.
We know it sounds simple, maybe too simple.
But the fact is that land is often the forgotten part of the ‘labour + capital’ equation.
You need land to do anything in this country — it’s the bedrock of the Australian economy.
Once you wrap your head around how passive income is extracted from the Australian housing market via rent — you can become a smarter buyer/seller.
We know things look stretched in Australia at the moment. For instance, this is what the RBA is looking at right now:
Source: RBA
But you have to ignore the Australian housing market doom-mongers who are trying to sell newspapers, or make a buck of their own.
We look past the hyperbole here at Profit Watch and give you the cold hard facts.
Yes, 2018 was a down year and 2019 was pretty much flat for national average housing prices.
But talk of a crash in Australian housing is premature.
History is our teacher here.
What we have gathered from over 100 years of housing data is what informs our outlook for the Aussie housing market.
Numerous well known historical analysts such as Fred Harrison and WD Gann, link real estate to 18-year cycles. And according to Australian economist Phil Anderson, the cycle has lasted on average 18.6 years — never less than 16 years and never more than 21 years.
Once you know how this cycle works — you can ignore headlines like ‘Housing Downturn Imminent’ or anything that includes the words ‘Australian Property Bubble’.
The cycle tells us that government policy changes are usually quite predictable, you can make accurate forecasts and that until there is a major change in tax policy — the boom, bust cycle will continue.
To get to grips with this question, Profit Watch looks at a large range of data and charts to keep things simple for you.
We don’t tell you where to live, but we aim to give you a good understanding of the trends within the Australian property market.
We look at these trends from the perspective that people will always seek out passive income from rent.
It’s the easiest buck to make in the world — money from the land.
Given that we follow the Australian economy and markets closely — we know where the money is moving within this country.
This plays a big role in demographic changes as well as investment flows, all of which play into the Australian housing market.
We know the Sydney and Melbourne housing markets play a big role in moving national averages — but what about the Perth housing market, the Tasmanian housing market or the Brisbane and Gold Coast housing markets?
If you are looking for answers — make sure to read ‘Why the Property Market is Unlikely to Crash Until 2026’ and learn why real estate expert Catherine Cashmore expects a major property boom over the next five years.
