The last quarter has seen property prices fall in about four out of ten suburbs in Victoria, which has in turn reduced the amount of competition for homes and buyers are getting more bang for their buck.
However, a recent Sydney Morning Herald article states that buyers are still having to compromise when searching for and buying their first or next home, which is due to the pullback in the number of homes being listed for sale.
Home buyers are finding that properties that were once out of their price range at the beginning of the year, are now within their budget. Houses are dropping into a different price bracket and if you’ve got the same money to spend you’re in a better position.
The Sydney Morning Herald found this was limited to buyers whose borrowing capacity had remained relatively unchanged, despite three consecutive interest rate hikes — that lifted the cash rate from a record low of 0.1 per cent to 1.35 per cent — and rising living expenses.
If you’ve gone back to the bank and they’ve said we’re not going to lend you as much money … those folks are having to reassess what it is they can buy. They may have to go further out, or reassess the size of property or the quality.
Although property prices are declining, some house hunters still have inflated expectations about what they could secure for their budget. Others were spot on in their expectations, but a lack of suitable stock, and rising interest rates, meant their property wish list and search area had started to change.
Do you need help navigating your next property purchase? Talk to Chamberlain Property Advocates about how we can help you find your dream home.
Ask about our Buyer Advocacy Service, where we provide you with trusted impartial advice and WE MAKE IT EASY to protect your interests through out the entire selling process.
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