Falling auction rates depict a turning market – a market which suits buyers.
Many buyers are now asking ‘when do I buy’ and ‘how do I buy’ rather than desperately screaming ‘I’ve got to buy.’
With close to half of properties being passed in at auction, buyers are sitting on their hands as prices in Sydney and Melbourne slowly deflate.
But, buyers need to understand that there is little chance of a collapse, with interest rates likely to stay low for some time and the seasonally adjusted unemployment rate has now fallen by more than one percent from 6.38 per cent in October 2014 to 5.37 per cent in June 2018.
Stay on the sidelines by all means, but don’t expect to buy a Brunswick or Ultimo apartment for a song in a few years’ time.
And, when property does pick up, it picks up quickly. After all the crashes in mining town properties, investors in Port Headland have enjoyed a 19 per cent growth and nine per cent rental yield.
Buyers are in the box seat now; will be for a while; but wont be forever.
If you want to discuss finance and the Australian property market, please feel free to contact me on 1300 30 67 67.