What an interesting year it’s been as a Mortgage Broker… it seems finally there is some post GFC light at the end of the tunnel.
It’s been really nice to see First Home Buyers coming back into the market in some force. Prices are obviously a bit more appealing than during the last boom plus with the ever increasing rental prices, home ownership seems a more logical option.
To me anyway, if new buyers are entering the property ownership process, it must have a flow on effect eventually to the rest of the property market.
There are also signs of the houses for sale volumes reducing… basic supply and demand means this should slowly settle house prices and if it continues it should send them in a more positive direction.
As I’ve mentioned in previous blogs, fixed interest rates are still falling which is always seems to be a good indicator for future Reserve Bank interest rate movements.
Another positive sign, which can only help consumer confidence to move upward I think.
It’s also been nice to see investors re-entering the market which like the first home buyers has to have a positive effect helping the property market start moving forward. Again, the rules of supply and demand mean good investors buy at the bottom and sell near the top. During the last boom, it seemed everyone wanted to buy at the top of the market then suffered as prices dropped back after the boom.
My thinking with a market boom is this: when there aren’t many houses on the market, people tend to pay a premium to get hold of a particular home, like a bidding war perhaps. The opposite being during a drop in the market, there seems to be a flood of stock so there are no bidding wars; even just finding buyers can be an issue… a bit like a clearance sale in the shops. Too much stock means prices must be dropped to make the property more appealing than the many others on the market. Again it’s just supply and demand… it just happens to drastically affect our most precious asset.
Things seem to be looking up. I’m certainly getting busier which is just another little barometer. If I’m busier, presumably the market is too.
What do you think?
