Why Australian house prices rise? There seems many factors – demand and supply, immigrant, inflation,etc. However, I say there is only one factor – fear! Becasue you fear that the house prices will rise further, so you want to secure one as soon as possible. Other people have the same fear so you have to pay more than you should pay to secure one property!
This fear of rising prices meant many buyers snapped up homes requiring significant renovation, fearing they’d cost more in the future. The haste was perhaps felt most by many first-home buyers anxious not to miss out on federal government assistance before it ran out last year.
One New South Wales renter said she and her husband inspected a tiny three-bedroom brick home in Forestville “with a dire need for a new kitchen and bathroom and dank basement area that had obviously flooded multiple times.”
It was advertised for $780,000 and attracted 200 people at the open house. “Even after the estate agent revealed the serious drainage problems with the property, it still sold for around $880,000.”
Are you fearing that you will have to pay more to buy a property in the future? If your answer is yes, then you are causing the higher and higher house prices in Australia!