According to Residex, both Sydney and Melbourne property prices are down. But according to Corelogic these cities grew 3.9 per cent and 3.4 per cent respectively in the last quarter.
Digital Finance Analytics confirmed that no-one really knows what is happening to the property market when it wrote, “As best we can tell, price momentum did moderate in recent months, but now is on the rise again, thanks to low rates, and ongoing interest from investors. Somewhere between 2.5% and 7.5%!”
Across the country, total loans are now $1.5trillion, up another $7.9 billion in the last month.
It is highly likely that all are right – across the country, prices can be up AND down depending on where you are. Whether your location is going forwards or backwards requires expert analysis.
Because some economists believe we are at the top of the market, many banks are taking differing approaches to whom they will lend – and on what terms they will lend. For example, some lenders:
• Will not lend on new properties in the CBD
• Are keen to lend to owner-occupiers
• Have reduced how much they will lend to investors
• Are offering aggressive rates for commercial properties
• No longer lend in certain postcodes
• Are offering discounts of as much as 1.5 per cent for the right client and the right property
But just as there is no consistency in what is happening in the property market, there is no consistency with the banks and how they are responding to this uncertain world.
In this time of uncertainty, best to call an expert.