By Tim McKibbin, REINSW CEO
The conclusion of the banking royal commission is a critical milestone for the property market.
It’s no surprise that since the investigation was announced in December 2017, property prices have been negatively affected. The four big banks – and many others – have tightened their lending assessment processes and increased scrutiny of applicants’ expenses and ability to service loans. This has reduced homebuyers’ borrowing power and put pressure on prices across the state.
Until the conclusion and implementation of the final recommendations likely due in February, as prices continue to flatten, opportunities are growing for homebuyers entering the market. First homebuyers reached 18 per cent in August 2018, the highest level in six years. So while the market plateaus, first homebuyers are seeing the opportunity to enter the property market.