Latest property data heralds good news for those eager to crack into the market in 2018.
Prospective first home buyers can allow themselves a sigh of relief with the latest CoreLogic data revealing that national property prices fell 0.3% in December 2017, with further drops tipped to come.
The Sydney property market experienced 0.9% decline for the month of December, while Melbourne dropped 0.2%.
“There’s going to be a negative growth rate, probably most similar to 2000 to 2003 when prices fell by about 7%,” said CoreLogic’s head of research Tim Lawless.
Cities that experienced positive growth for the month of December included just Adelaide (0.3%), Hobart (1.5%) and Canberra (0.2%).
“Positive lending environment”
Lawless is tipping the December trend to continue for Sydney and Melbourne throughout 2018, saying it was “likely to be significantly different relative to previous years”.
“We’re likely to see lower to negative growth rates across previously strong markets, more cautious buyers, and ongoing regulator vigilance of credit standards and investor activity,” Lawless said.
“Although credit policies are likely to remain tight, we expect mortgage rates to remain low in 2018, providing a positive lending environment for those who are able to secure credit.”
What does this mean for me?
Well, if you’re a hopeful first home buyer looking to gain a foothold in the property market, continuing downward trends could mean that the mirage of owning your own home becomes a reality.
That’s because instead of home prices rising several thousand dollars every quarter, they’ll drop, giving you the time you need to be patient and select a home you love, not just one you can afford.
In fact, AMP Capital chief economist, Shane Oliver, is tipping prices in Sydney and Melbourne could fall by up to 5% this year.
“Low interest rates and support for first home buyers are providing some support and should help ensure only moderate price falls,” Oliver says.
What’s my next step?
If you’re interested in finally cracking into the property market, come pay us a visit and we’ll sit down with you, crunch the numbers, and see if it’s in your best interests to make the leap in 2018.
If it is, we’ll help you get started on making your 2018 property dreams a reality.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
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Social media teaser. Feeling locked out of the property market lately? Prospective first home buyers can allow themselves a sigh of relief, with experts tipping prices to dip throughout 2018.
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