PROPERTY PRICES TO LEVEL OUT
For the past 3 weekends I have noticed open house numbers slowly decline, although the really sort after property’s are still commanding record prices I have not witnessed it across the board like the beginning of the year and certainly in the back end of 2009.
At 6.5% interest rates are still very cheap and it is safe to assume they will keep raising toward a more realistic 8% over the next 3 years, however I’m finding purchasers are being careful with the constant rate rises and are budgeting for them thus effecting what they are willing to pay for the property.
With the market just starting its new “Cycle” and speaking first hand I can tell you from 2004 until 2009 the market keep going down and down, the terrible market conditions when most owners couldn’t sell there property’s even at cost price and had to take losses are well and truly gone but with the sudden “boom” that started mid last year it is safe to presume the market will remain buoyant for a few years to come history tells us that.
My personal opinion is that the market will now level out and capital growth over the next 5 years will be gradual and not compounded like we have witnessed these past 6- 8 months prices will most definitely not decrease but they will stop raising in the short term , if you are a buyer and are finding it increasingly difficult to buy something, stay strong be patient and keep saving.
I feel like the persuing months may be kinder to you, and there should be more stock to look at
At 6.5% interest rates are still very cheap and it is safe to assume they will keep raising toward a more realistic 8% over the next 3 years, however I’m finding purchasers are being careful with the constant rate rises and are budgeting for them thus effecting what they are willing to pay for the property.
With the market just starting its new “Cycle” and speaking first hand I can tell you from 2004 until 2009 the market keep going down and down, the terrible market conditions when most owners couldn’t sell there property’s even at cost price and had to take losses are well and truly gone but with the sudden “boom” that started mid last year it is safe to presume the market will remain buoyant for a few years to come history tells us that.
My personal opinion is that the market will now level out and capital growth over the next 5 years will be gradual and not compounded like we have witnessed these past 6- 8 months prices will most definitely not decrease but they will stop raising in the short term , if you are a buyer and are finding it increasingly difficult to buy something, stay strong be patient and keep saving.
I feel like the persuing months may be kinder to you, and there should be more stock to look at
The opinions expressed here are those of the individual and not those of Homely.com.au.
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