Australians are beginning to feel the pinch as cracks begin to appear in their real estate market. In a recent report on Australian news website, thedaily.com.au, real estate agents in Queensland’s Sunshine Coast are gearing themselves for a property price drop by as much as 30% in the next 18 months.
The reason for the drop?
Well they are numerous reasons that have been largely linked to rising interest rates, soaring petrol prices and the recent stock market crash.
Even auction houses are experiencing clearance rate drops, with Brisbane being the worst performer with only 24% of properties sold under the hammer – less than half last year’s figure.
Two weeks ago in the mid-course of an auction campaign, buyers became wary, and it (a downturn) usually starts with buyers. They’ve become tentative to bid at auctions at any price.
Even Sydney is not exception, with auction house clearance rates at a below average 48.3% sales; a significant drop by 11% from 2007’s clearance rates.
A Queensland’s Sunshine Coast Agent, Michael Knight remarked that the panic was yet to start, but would “happen and it will happen overnight” and predicted a 10% – 30% drop in value.
The real winners in Australia would be first home buyers who until now have found it almost impossible getting up the property ladder.