It’s a familiar story:  buyers poised to make a property purchase within budget, but sellers wanting to score top dollar on their home.  Neither wants to budge, and it’s not unusual to reach a stalemate in this situation. Quite often, one or both parties need to come to a compromise to get any sort of result.

 

Had they timed it better, however, they could have either snagged themselves an absolute bargain or made a very tidy profit.

 

Currently, in cities such as Brisbane and Perth, housing prices have taken a dive – falling as much as 3.0%.  Young couples are snatching up prime opportunities in a buyer’s market, giving them the pick of the crop.  Of course, this is not such great news for the vendors.

 

While securing a bargain is fantastic right now; having to sell in a hurry in the same market, would mean losing out.  Buyers will need to be committed to the property for many years.

 

Sellers in Queensland’s southeast will still need to be patient – with one resident stating that “the people who are going to make money out of it – don’t’ really care if it’s up or down”.

 

In Melbourne and Sydney, on the other hand, the market has risen again, squeezing many a homebuyer out of the picture once more.  This is especially true in the high-end market, but it comes as no real surprise, given these two major cities are the usual suspects in this game.

 

After the last Federal election – Melbourne’s property market rose by 0.2%, with Sydney not far behind at 0.1%.

Auction clearance rates have since reached 77% in Sydney and about 80% in Melbourne, showing some very strong results.

 

Property prices in most other state capitals have continued to decline.

 

Typical of places like Sydney and Melbourne, it’s usually the high end of the market that leads by moving first and provides an indication of what other markets could do in the future.  It is especially true of Melbourne’s eastern suburbs.

 

The question is – does this tentative rebound have momentum?  The consensus seems to be that it will require a stronger, growing national economy to keep going.  We have sluggish income growth across the country, with slow economic growth expected, and this is going to temper the nature of this current upswing.  Housing remains unaffordable for many people in the foreseeable future.

 

With all this in mind, there is still a way for you to forge ahead, regardless of market trends.  You can use the equity on your existing property right now and grow an investment portfolio sooner than you think.  All without having to let the market dictate your earnings.  Give us a call to discuss your options – as there’s really no better time than the present!