Is it Fake or Factual?
Ok, so it may not be fake news but it is factually creative. With our 24/7 news cycle (and the need for journalists to always be producing new content), it’s no wonder that we keep seeing a swing between “The Perth Property Market Is Improving” (albeit slightly) and “Perth Property Market At It’s Worst”. So which one is true?
Technically, the answer is both. It all depends on the writers intent and where they get their data from. The upturn in housing values and approval numbers are generally taken on a month on month basis. That is, this month’s figures are compared to last month’s figures; giving us a rise in both values. This creates a sense of optimism in the market and the economy in general.
However, the doomsayers are likely to be taking their data from the most extreme points of the property cycle. They will compare house values from the very top of the market (many years ago) and then compare it to the very bottom (which is data that is probably a few months old by now). Why do they do this? I hazard to guess that it’s just to sell papers (and/or subscriptions) to those who thrive on misery.
So what does that mean for you as an investor. Should you get into the market now or not? Well, that comes down to doing your own due diligence. It’s no good looking at the worst case scenarios being reported unless you bought the property at the peak of the market and are looking to sell it yesterday. You need to look at what your personal situation is right now and what you want to achieve from your investment. Whilst we can use the reported figures to inform our decisions, nobody has a crystal ball for the property market. Do your own research!