A Normal Property Market – And Are We Nearly There Yet?

I was very interested to read Mark Hordern’s blog about a normal property market.  Mark is Chief Executive of GSPC and he has his finger on the pulse of the market especially on the west coast.  Mark’s conclusion was that we are still some way off a normal market and I have to agree with his assessment.  Transactional levels would need to increase significantly – probably by about another 50% per annum for us to reach a normal free-flowing market.  It is only with an increase in transactional levels that we will be able to control a spike in housing prices because as levels remain low, distortions in the market will appear and supply and demand will be out of sync causing unsustainable rises in prices.