As a direct result of the negative reports on the Australian banking system during the current royal commission, we are seeing banks scrambling for cover and reducing their exposure to home lending, particularly to self-employed business owners and contractors.
Credit availability has tightened over recent times and transaction volumes in the housing market have fallen leading to a reduction in turnover.
Rather than the fear of missing out in the property game, which was driving auction clearance rates for the last few years, more recently it’s become a fear of buying too early.
With price adjustments happening across Melbourne, some buyers and sellers think a slowing market is a no-go zone, but it can actually be the opposite – a time of great opportunity. Larger homes may have adjusted at a different rate to smaller homes or vice versa. When buying and selling a property simultaneously under the same market conditions the state of the market is virtually irrelevant. Put bluntly, if you buy and sell in the same market whether it’s a quiet market or a booming market, you will end up in a similar position.
With an abundance of negative headlines about the real estate market in the media, it is understandable that many buyers and sellers have become confused and reluctant to make a move and therefore hold-off on making a decision. From previous experience we believe that those who push ahead and appear to be bold will be the ones that achieve the best opportunities in the months ahead.
Anyone who has a question in relation to their personal situation should call a PhilipWebb representative so that we can go through the pros and cons of any strategy you might be considering. We welcome your call.