Hindsight in the property market works just as well as knowing last week’s Tattslotto numbers. It is easy to be wise after the event.
From the vantage point of 2018, we can now see the peak in the Melbourne property market was around last September. Now, after seeing an incredible period of growth, the market is slowing.
This is not something to be greatly concerned about judging by the reaction of the Reserve Bank of Australia at their recent July board meeting. So, while “housing prices [have] declined in Sydney and Melbourne following significant increases in previous years”, there is no reason to believe that this foreshadows a collapse in the market. Rather, the price decline is gentle.
The RBA attribute this is in part to the fact that “investor demand had slowed noticeably”. This is consistent with property cycle trends; investors who are not seeking long term gain will desert a market with less prospect for making the ‘quick buck’.
The RBA also recognises the likelihood of the banks taking a more stringent outlook on their lending in the aftermath of the Royal Commission. The minutes note “some further tightening of lending standards by banks was possible.”
The key to your success in property investment is having help to wade through all the facts and figures of the property market. Accrue Real Estate has the expertise and current industry and market knowledge to help you decide if now is the time for you to buy that investment property. Contact Accrue Real Estate to learn more about Melbourne property investment opportunities.