banks change

Buyers willing if banks are.

Despite the sensationalist reporting in some sectors of the media, there is no shortage of buyers in the current property market.

Leading indicators of market sentiment such as internet activity, enquiry level and inspection numbers all remain healthy. The challenge comes when the interested buyer approaches their respective financial institution.

The credit squeeze through the banks has been the catalyst for the current market downturn. Fortunately for those vendors prepared to sell at current market price, there are still ample buyers willing to pay a fair market price.

Interest rates remain at record lows and look set to stay that way for some time. As prices begin to show more value, buyers now face some of the best buying conditions since 2012.

Along with finance, sentiment has a huge bearing on how the property market performs.

In a boom, buyers tend to feel as though they are buying at the top of the market. In a matter of weeks, the purchase looks sound.

The credit squeeze through the banks has been the catalyst for the current market downturn.

Conversely, in a falling market, sellers feel as though they are the chump selling at the bottom of the cycle. By the time the sale settles, they are relieved they sold when they did.

The interim report from the Banking Royal Commission was released in late September. The damning evidence highlighting the banks behaviour has seen further tougher standards imposed into the marketplace.

The current softness in property prices creates an opportunity for first home buyers, investors and upgraders to take advantage the value on offer.

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About The Author
Peter O’Malley

Peter O’Malley

Peter O'Malley has been successfully selling real estate in the Inner West since 2000. Since becoming the principal of Harris Partners, the agency has gone from strength-to-strength, increasing its market share and a significantly larger sales team. Peter's proudest achievement is in being able to offer buyers and sellers a superior selling strategy to the highly dysfunctional and flawed public auction system. Peter is the author of best-selling publications, Real Estate Uncovered and Inside Real Estate.

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