As I explained last week, a market on the downswing is heading towards the bottom. The bottom of the market, or 6 o’clock on the property clock, is when prices are at their lowest, consumer confidence is virtually non-existent and the real estate market is at a standstill.
In 2010-11, it was safe to say that the Australian property market was hitting the bottom. Housing prices were levelling out and in most cases, fell. As an investor, this is usually a great time to buy as property is cheaper and there is greater chance to make returns as the market rises.
However, the one thing to remember about the bottom of the market, is that the quality of stock on the market can be hit and miss. So it is important when buying property at the bottom of the market, that you do your homework on the property you want to invest in and the area to ensure it will make the returns you want in the future.
Today however, the news is better. Real estate analysts have announced the market is on the rise with property prices slowly on the increase in many areas across Australia and consumer confidence back on the boil.
Maybe now is the right time to buy?