Has the Market Slowed Down?
Concerned about the current market trends?
You may be an investor, buyer or a seller within the current property market, regardless of your position the slow market growth will have tremendous affects on the future of your assets upon the decisions you make today.
It is no surprise that the $7.5 trillion-dollar housing industry is a major controlling factor of the Australian economy. The continuous growth rate witnessed in previous years has currently hit an all time low. Regardless of the healthy loan ratio of 23% estimated at $1.7 trillion the current consumers of the market seem to be worried about their investments loosing its value.
What’s actually causing these Trends?
Stricter lending criteria that has merged in the recent months has limited the borrowing power of the consumer allowing only manageable and responsible amounts of debt.
Restrictions towards borrowing abilities has locked out buyers from entering the current market.
Higher tax rates upon foreign investments has affectively slowed down the rate of foreign involvement within the industry causing an overall stall within the property market.
Should you worry?
It can be concerning to many as the current market has seen a constant decrease since September 2017, though it must be taken into consideration that these changes are mainly affective towards high priced real estate rather than the lower end of the market. It is crucial to take into consideration of the 2017 growth rates when comparing the current market conditions, which in fact shows that it is still at a high regardless of the reduction in its growth rate.
The market prices will remain at a steady state as the current market growth has declined in pace which only indicates that the properties within the current market will hold its value at a minimal loss.
As a consumer it is important to be aware of the changing market conditions and it is beneficial to understand the value of your property at different stages of the market. We as a local real estate firm provides free market appraisals that can highly benefit you in understanding the value of your property in regards to the current market conditions. Please feel free to contact us if this service interests you. Only one thing left to do ……