First the good news…… the worst of the property market declines appear to be behind us and it now looks like we are entering a period of greater stabilisation for the remainder of this year and into next.
After more than five years of sustained property price growth, the Australian property market reached its peak in late 2017. Since then we have seen property price declines particularly in the Melbourne and Sydney markets which to date have fallen around 10% & 15% respectively.
In our view, these price declines are part of a rebalancing of the market which always occurs in any market after periods of sustained rises.
In recent months we have been watching the statistics coming out of the property market very closely for signs of a turn around. And the signs are positive with the rate of decline reducing in most markets across the country.
With interest rates falling and the banks starting to ease their tight lending policies, consumer confidence is rising off the back of the recent coalition victory in the Federal election. This has been reflected in a higher number of loan applications, more searches for property listings and rising auction clearance rates. First home buyers have also returned to the market after being shut out due to high prices for a number of years.
So whilst the property market is certainly not rebounding, we think there is good reason to anticipate more stability in the property market in the months ahead.
Did you know that if your customer does not have a cash deposit readily available, you can help them with a Deposit Power guarantee? Deposit guarantees are the fast & low-cost alternative to a cash deposit. At settlement, your customer simply pays the full purchase price (which includes the deposit amount).