This question regularly gets asked, is the property marketing changing? Are we in for a correction? Will the property market drop?
Its no secret the press and media have given the property market in Sydney and Melbourne a right hook on sustainability and the crazy growth that has occurred in the last few years. With this said, the general public are anticipating a drop in the market! All directions are pointing towards our economy unable to match and sustain this growth and although interest rates are still at an all time low, wages are not increasing enough to sustain the ever rising mortgage repayments.
There is no doubt the auction market has changed significantly in some areas, with bidders decreasing from 4-5 to possibly 1-2. Buyers are wary of change and with change they are becoming more aware of circumstances. Sitting tight and awaiting for the market to drop is a trend we are starting to see. Does this lead to a market to decrease? Possibly!
My view on this is forever the market can simply not sustain the growth we have had but betting on a market to drop and a recession happening is close to zero chance. Plateau is a great word to use in a situation like this. Facts show the market hasn't changed too much. The heat might be out, however prices and auction clearance rates are still holding firm.
There is no doubt we are in a changing market, but this being reflective of prices and growth is potentially just a myth. Demand is still evident and if there is any proof in the pudding just continue to monitor prices and auction clearance rates. Demand may have settled, as well as growth however properties are still selling well with potential sellers still trying cash in on this booming market.