Newton’s law says ‘every action has an equal and opposite reaction’. Or, what goes up, must come down.
According to a report from CBA economist Gareth Aird, Australian house prices have been rocketing since 2012 – ad boy have we felt it. Up around 50%. Great news for the ‘landed’; but one long desolate journey if you’re a first home buyer, as gravity defying prices carry the home ownership dream away and then further away…
But, cheer up!
Newton’s ghost must be lurking in the Australian property market – particularly Melbourne and Sydney – because it’s fallen for 13 months straight. And the much hoped-for soft landing took another hit last week. CoreLogic’s data as at mid-October put Australian clearance rates at 50.7% and there’s a real chance it’ll go sub-50% for the peak spring selling season. Add that to the looming credit squeeze, caused by tougher lending criteria, and buyers will come to auctions with less money. Prices must drop so owners can sell. Simple. If you’re a first home buyer with your finances in order and a good credit record – the odds are in your favour! If the data is anything to go by, opportunities will only get better. If you’re curious to see what the future could hold for you, get in touch! I can help you compare loans from over 35 lenders and even hold your hand during the buying process!
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