Falling housing prices may not bode well for the overall property market. As the first spring auctions in the major cities have shown this year, it’s still unsteady.
Australia’s housing downturn may be getting worse, ABC News recently reported. Melbourne may see the biggest effect, having declined around two per cent over the last three months.
But, first-time home buyers may be able to take advantage of the lower costs.
Should first-time home buyers strike now?
Spring is usually the busiest selling season but reports in the last few months have showed that not as many people are buying homes this year. This could put new home buyers in the right place at the right time to get a great deal on a house.
Are there downsides of buying during a downturn?
There are some downsides to buying in a low market. If home buyers end up overpaying at auction, as Domain points out, making up the difference is much harder when values aren’t on the rise.
Domain also said that prices could continue to fall this spring, so it may be a good idea for home buyers to keep an eye on the changes. It’s not always the best idea to buy if prices will plummet further in coming months and years – it may mean the suburb you’re looking in is out of style. This could result in great difficulty selling your home at a later date should you choose to move on.
Another possible downside applies to those looking to invest in a fixer-upper home. The work put into these homes may not be accurately reflected at re-sale in the market is down.
How we can help you
Applying for a home loan can be a complicated process, especially for first-time home buyers who may not be as familiar with rates and prices. With ups and downs in the market, you may wonder when you can get the ideal loan for you. Our team of mortgage brokers can help you navigate the market and present you with a rang of finance options.
We are committed to providing you with an outstanding service and our goal is to make the home buying process stress free.
Contact us today to learn more about our home loan services.