The year is quickly coming to an end and with less than three weeks until Christmas, we take a look back at the property market in 2017.
Looking back at 2017
It has been an interesting year in the property market for many reasons. Rising prices have continued to increase affordability concerns and led to changes and new regulations in the housing market.
This year started off strong, but in the last half of the year we have seen prices soften, and for the first time since 2013 we recently had four consecutive weekends with a clearance rate under 70 per cent. This is a significant sign of change that is currently taking place in the market and it will be interesting to see if this trend continues in the New Year.
Changes in the market
The increase in property prices has meant entering the property market is out of reach for many. This has led to more uncertainty in the current market and we have seen an increase in the number of properties passed-in, especially over the last month, due to the amount of stock on the market and buyers having more options to choose from.
We have also seen more properties selling prior to auction, and agents encouraging vendors to consider genuine offers prior. Agents are no longer as confident in the auction process and are conditioning their vendors to consider any suitable offers made prior to auction. Buyers are aware of the uncertainty in the market and are choosing to take a step back and observe instead of rushing in to make a purchase.
Affordability and high deposits
Banks have implemented new regulations for investors, which has decreased the number of bidders participating at auction. The decrease in the number of investors at auction, along with the new stamp-duty concession that was implemented in July this year, has given more first-time buyers an incentive to enter the market.
Prices have continued to rise and properties are becoming more expensive, which means that buyers need a higher deposit to secure their future home. This makes it especially hard for first-time buyers, without any assistance from their parents, and self-employed people to secure a loan from the bank.
Interest rates are predicted to increase sometime in the near future, which will then impact those with large home loans.
Looking ahead to 2018
The property market is constantly evolving and it will be interesting to see what 2018 has in store. At PropertyDuo by WBP Group we’re looking forward to bringing you the latest property trends and tips in 2018, to ensure you have the information at hand to make informed decisions when buying and selling property.