Whilst there has been a gradual change in the mood in the property market happening for months, the recent abrupt halt in the Sydney market has brought the mainstream media spotlight onto the change. The good news is that conditions have improved for 1st home-buyers.
Right back at budget time, the changes brought in to make buying and holding property by foreign owners more expensive, by both State and Federal Governments was flagged as likely to have a significant impact. Combined with the pressure brought to bear on banks to restrict lending to investors, the concern was that it might be too much, too quickly.
And yet the market kept chugging along. Momentum was sufficiently strong that prices kept rising. Until now. Sydney has now moved to becoming more of a buyers market and Melbourne is currently teetering. Clearance rates have been gradually sliding and the real rate is now below 70%.
All of this has made life a bit easier for new buyers and investors are currently quite cautious. Which way the Melbourne market will tip from here is uncertain but what is clear is that we are now in a changed market.
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