The property market has weakened since the interest rate hike, which has been hitting big property investors. However, there remains large competition around the big, new houses which has meant the market has returned to a normal one. A normal market is one considered to have steady auction clearance rates around the 60 per cent mark as when the clearance rates linger around the 80 per cent mark it is seen to be unsustainable long term. The average home buyer’s disposable income and borrowing capacity is decreasing due to hikes in interest rates therefore the house prices given by sellers may need to decrease for consistent sales. In the foreseeable future we may see a property market if sellers are willing to meet buyers in the middle.
What are your predictions for the property market ?