Downturn in property market 'is just beginning'

Monday 09 May 2011

Article by Mozo

Prospective home loans customers hoping to get on the property ladder for the first time may be encouraged by the comments of one expert, who claimed the downturn in the market is "just beginning".

Property market's decline 'is starting'

In The Kochie Blog, investment and business commentators David Koch said a pick-up in the property sector "will be a long way off".

However, if property prices are indeed set to start falling, those who manage to compare home loans and secure funds for a purchase could find they get a better deal.

According to Mr Koch, residential property values are not likely to recover soon for a number of reasons, including low clearance rates, the two-speed economy and tighter lending policies being put in place by banks.

Last month, the home value index from RP Data and Rismark indicated that the cost of abodes in the nation's capital cities fell by 2.1 per cent in the first quarter of the year

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