It had to happen eventually. After 20% growth last year, this year looks like a return to normal, with the median house price rising by just 2% between December ’07 and March ’08 (source: Australian Property Monitors). Apartment prices actually dropped 2%, possibly caused by investors pulling out of the market.
I heard someone say today that the really big investors are pulling out of stocks and property and just waiting until things stabilise one way or the other. So until we know for sure what’s going on with property prices and interest rates, investors will stay clear, prices will remain steady or decline, and the buyers will be the ones in the box seat. So long as you can afford the mortgage repayments
