Although there are more properties on the market than during winter, we haven’t seen the usual spring-time boost to property listings that we would have hoped to see. According to the AFR, listing numbers rose by less than 0.5% in September, whereas last September an extra 10% hit the market.
We believe that a number of owners are holding off selling due to the drop in prices. We don’t see this as a reason to deter a property transaction because as long as you are buying and selling in the same market it makes little difference whether prices have dropped or not.
Interest rates were once again placed on hold for a record 26 months and we don’t see that changing over the next 12 months. Banks, however, look set to tighten their lending policies even further. We have already seen a cut in borrowing capacity by up to 10% for some buyers due to tighter regulations and many analysts predict this may rise further.
We are seeing more buyers than ever using mortgage brokers to help secure and find the best loan available. There is merit in taking this approach and we greatly support this strategy. A good mortgage broker saves you time, has up to date information about the latest deals and are free for the buyers because they receive a fee from the lender once the loan is settled. Call us on 8303 1800 if you would like to learn more.