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First Home Buyers Rejoice as Housing Market Cools

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housing market cools first home owners celebrate

Housing prices have been a hot topic of discussion in recent years, whether it be in the mainstream media or on finance blogs, or amongst neighbours, families and friends. 

If they don’t already own property, most Australians aspire to do so, but for many, the dream has been just that, a dream, as prices have continued to rise consistently. In fact, The Economist this year reported that Sydney has seen house and apartment prices up 64% over the last ten years.

But there may be hope for those who have been patiently waiting for the right time to finally invest in a piece of property. Described as a ‘housing bubble’ by many economists and financial authorities, the Australian housing market has been consistently strong since the GFC in 2012. But figures released by CoreLogic late September this year indicates a definite ‘correcting’ of the market, with some economists predicting further falls, up to 12% in housing prices. With this year’s Springtime sales (traditionally the busiest time of the year for the housing market) lacklustre in Sydney (down by 6.1% on last year) and Melbourne (down 3.4% from last Spring), a cooling of the market appears to be taking effect.

The Sydney Morning Herald reported last month that the median house price in Sydney has fallen by $72.041 in a year and Melbourne has seen a drop of $45.376 off prices in the same period. It’s important to keep in mind that this is on the back of a 34% rise in prices in the most recent growth cycle. So even at the predicted worst, a 12% drop in prices is not quite big enough to be too alarming for most existing homeowners, but maybe just enough of a decline for the many waiting in the wings to buy their first home. And with all-time record low-interest rates, this may finally be the opportunity many have been waiting for.   

Wherever you are in your home buying journey, whether it be saving for a deposit, or ready to bid at an auction, Endeavour Mutual Bank can assist.

As a first home buyer with Endeavour, you will have access to continued support and up to date information every step of the way to make the process as straight forward and stress-free as possible. The friendly staff at Endeavour can help to guide you through the process of applying for a home loan and ensure you are on the right path.

If you are ready to buy and want to take advantage of a cooling market, a fast approval will ensure you are in a position to act when the right property presents itself. The lending specialists at Endeavour can assist you in obtaining a full approval quickly and easily. There are a number of excellent Endeavour products available to assist you to get into your own home sooner, including the First Home Buyers Loan which offers a reduced rate for two years to any first home buyer purchasing their first home or investment property and the Family Helper Loan can assist you if you don’t have a large deposit saved up or you’re short on funds to make the purchase.

To find out more about preparing yourself for purchasing property contact us or explore our easy to follow Home Buyers Guide for some more handy hints and tips.    

Alison Gallagher is a freelance writer, resourcefulness expert and entrepreneur. She has been featured in various publications including Stellar Magazine, Australian Health and Fitness Magazine, and Cleo Magazine. Alison is particularly passionate about sharing practical tips on how to live simply, sustainably and seasonally.

All views, thoughts, and opinions expressed in this blog belong solely to the author, and not Endeavour Mutual Bank Ltd.