After decades of increasing prices the Brisbane real estate market has started to show signs of slowing down. In recent months, prices have plateaued, which is a new development in a market where house values have increased every year in recent memory.

After the recession of the early 1990s, house prices in Brisbane stagnated. The average price of a property hardly increased at all over the next few years. There was no property crash, as such, but the value of people’s home barely increased.

Towards the end of the decade prices started to move again. The 200s then brought one of the biggest property booms in history. Prices have increased every year since then and until recently have showed no sign of slowing down. Increases in property prices have far outstripped increases in average salaries, leading to a calibration issue with these two metrics.

While analysts have been saying for years that prices can’t continue to increase at the same rate they have been, not much has changed. Homes have become largely unaffordable for many young families as investors continue to snap up properties and banks offer more flexible mortgage products.

However there are finally signs that prices are about to plateau. Figures released recently show that the average price of a home in Brisbane has increased by only 0.1%, or one basis point, over a one month period. While this still represents an increase rather than a decrease, it is still noteworthy. It is one of the smallest monthly increases in the average value of property in many years.

This is cause for celebration in some quarters, particularly those where people are being priced out of the market. Young couples, individuals and families as well as low income earners have been arguing that they’ve been priced out of the market for years. A slow down in the increase in house prices might just help people to get a foot on the property ladder.

While the statistic is a positive sign for people hoping to buy their first home, it is not welcome news for property investors. Investing in property is big business in Brisbane and popular all across the country. Many people invest in residential homes to shore up their pensions. These investors rely on house prices to increase in order to build equity. A slow down in the market is not something investors want to hear about.

The same could be said for real estate agents. When the market slows fewer people are willing to put their homes up for sale in fear of achieving an unfavourable price. This means that there will be less business out there for real estate agents to do and they will, in turn, make less money through commissions.

It is early days yet, however, so there is likely no need for investors and real estate agents to panic. The market might be slowing down for a short period of time, but there are no signs that a crash is on the way. Brisbane real estate prices should be safe for some time yet.

Author Bio: Find out more about the Brisbane Real Estate Market and keep in touch with the latest news and developments http://www.brisbanerealestatemarket.com/

Category: Real Estate
Keywords: brisbane real estate market, property market