Lara McCool is a 28-year-old Sydney woman, looking to break into the property market with her husband.
She says it has proven to be difficult and they have been searching for more than two years.
"Well, it's been taking a lot of our time, because it's just hard to find anything in our price range. But we're just looking on Domain, things that fit in our budget, things that are in the area that we want, which is a lot more expensive than other areas. But, yeah, so still looking “
Residential housing in Sydney's inner east, Thursday, July 26, 2018. Source: AAP
Ms McCool says, in the meantime, they are taking the option so many other young couples are forced to take.
"Well, we're currently living with Mum and Dad, just because it's necessary and they help us save, which is great. It's just, yeah, a matter of saving a lot."
But in a sign of hope for some looking at various housing options, Domain property analyst Nicola Powell says the fall in prices goes beyond houses.
"What we've found is house and unit prices have softened nationally, both over the quarter and over the year. And this is the first annual fall for house prices on that national basis since 2012 and the first time that unit prices have fallen year-on-year since 2011. And, really, we're seeing that overall softer conditions across all of our major capital cities, really apart from Hobart and Perth. We're seeing all of our major capital cities perform lower compared to last year. But, really, that fall in that national figure has been driven by the softer conditions that are being seen in Sydney and, also, in Melbourne.”
Dr Powell says the signs are widespread.
“There's an intrinsic link between the availability of credit and house-price growth, and what we're currently experiencing now in that downturn, particularly focused within that Sydney market, are the impacts of those tighter lending conditions. We're seeing fewer buyers in the market, both owner-occupiers and investors, and those buyers that are in the market have a reduced borrowing capacity."
The fall in house prices over the year in Sydney, for example, are the largest since the global financial crisis a decade ago, at 4.5 per cent.
Consumer confidence has taken a hit, with homeowners apparently worried about falling house prices. (AAP) Source: AAP
The median apartment price dropped 3.5 per cent, its biggest annual decline since 2006.
Bessie Hassan, a money analyst at finder.com.au, predicts Sydney money may now turn to other cities.
"We've seen 'rent investing' take off, and that's where buyers have purchased property in more affordable areas but then continued to rent in their desired suburb. And we'll probably see this increase as Sydneysiders turn to other states, or other capital cities, in order to break into the market."
Booby Lakhra is Director of First Nation Real Estate Lakhra in Melbourne, he says market has definitely slowed down in more or less in all suburbs of Melbourne.
He says, market will settle in few months but if you are a first home buyer and getting a good deal in your preferred suburb then go for it.
Source: Supplied
