Mortgage Broker What If We Finance advises that recent research by RP Data is showing that house prices and unit prices in the Melbourne property market are slowing. Th RP Data housing price index showed that for the first time since May 2013 , house prices dropped by 3.6% in May 2014 leading to an overall increase of 1.6% for 2014 May year to date. It should also be noted that units fell by 2.6% May year to date.
While seasonal factors such as the onset of winter and the fact that historically April and May are slower months in the housing market have significantly contributed to the result this could also be a sign that growth in the housing market has hit its peak and is slowing.
With decreased housing affordability and pressure on rental yields and the dent in Consumer Confidence as a result of the budget this means that now may be a team to re-enter the market for those scared off by the hot conditions auction and sales conditions late last year.
These factors also mean that the chance of a rate rise may be slim in 2014 and now could be a good time to look at buying an investment property, a new home or restructuring your finances.
Of course everyones’ circumstances are different so it may make sense to talk to your mortgage broker What If We Finance today.