Home buyers looking to settle in real estate in Brunswick should find the market easier to break into in the near future.
A 1 October report by CoreLogic RP Data reveals that investors are losing steam in the property market and slowly giving ground to owner-occupiers. In December last year, the Australian Prudential Regulation Authority (APRA) took measures to curb the dropping affordability of housing.
The ten per cent 'speed limit' enforced is designed to limit credit growth. This was to encourage banks to keep lending standards up and have them be more prudent in high-risk lending.
Another key factor was to also tighten loaning to investors and in turn, allow more owner-occupiers into the market.
Since then, data is showing that slowly but surely, the result of these regulations are starting to kick in. In July, investment credit increase was recorded at 0.6 per cent, the slowest growth seen in almost two years. This is also attributed to investors now having to pay a premium on interest rates as well as facing mortgage serviceability restrictions.
The Australian Bureau of Statistics revealed data that as targeted, owner-occupiers are indeed finding they space they need to get in. From July to August 2015, the value of non-investment housing commitments was up 6.1 per cent according to seasonally adjusted estimates.
However, dwelling values are still high and there is still a big portion of the property field occupied by investors. On the bright side, these numbers paint an encouraging picture for owner-occupiers and could be a strong sign of things to come.
If you've been struggling to compete for real estate in Brunswick, you shouldn't give up just yet. With investors slowly losing ground, there's plenty of opportunities to be snapped up. Just give Ray White Brunswick a ring, and we'll scope out every inch of the market and help secure a great property at a ripe time for you.