As mortgage lending tightens the market is opening up to owner-occupier buyers
While there are many forces at play in the current changes happening across the property industry, one of the most pronounced things to impact the sector is the tightening of credit conditions and mortgage lending. CoreLogic’s latest Quarterly Economic and Property Review report predicts this as being one of the driving factors in the current dip in the market.
Owner-occupier buyers stand to benefit from this shift. Here’s why. In normal market conditions investors make up an average of 45 per cent of real estate transactions, particularly in cities like Sydney and Melbourne (Domain.com.au). In February, it was reported that the value of investor loans has dropped significantly, as much as 4.5 per cent according to the Australian Bureau of Statistics (ABS). So if you’re house hunting, this is good news. We’re currently seeing less participation from investors; therefore the market is opening up for owner-occupier buyers. This aligns with the trends commonly seen in a buyer’s market, which we reported on in November last year.
If you’re in the market to buy, speak to a hockingstuart agent today.