Supply and demand.  It’s the fundamental backbone of any market.  If a product is in surplus, buyers know they can hunt for the best price.  So, vendors are forced to keep their charges down.  Conversely, when supply is scarce, and products are highly sought after, sellers can raise their prices to their heart’s content.

The property market is no exception to this general rule and has been pricing many buyers out of the market for years.  This is especially true of cities like Sydney and Melbourne, which shot up 75% and 58% respectively in the five years between 2012 and 2017, as reported by Business Insider’s Jack Derwin.

And, just when the housing market was finally able to catch its breath again, a growing population has placed demand on property supply once more.  In turn, housing prices will continue to escalate even further.

Of course, the RBA has played an integral part in this charade, with a series of record-low interest rate cuts.  But they’re not acting alone.  With a re-loosening of lending standards by the major banks, the cost of borrowing has decreased, and buyers have their wallets open.  Yet, there’s little for them.

According to Derwin, “Construction of residential property is already in decline and the RBA forecasts a larger downturn ahead”.  An alarming prospect for house hunters.

It’s up.  It’s down.  It’s this way and that.  It’s enough to make you feel a little queasy.  Not to mention slightly cuckoo!

So, what do you do if you want to buy a property when there are no properties to buy?  How do you make the most of your extra funds?

GSA can help you with that.  The answer may be simpler than you realise.  And our strategy offers a calming reprieve from the circus going on around us.

Get in touch today to find out more.