THERE has been a decline in the number of people interested in buying property in Australia this year , according to real estate agents .

The most recent Corelogic Monthly Housing & Economic Chart Pack came out in August 2017 , and it has some interesting data to shed light on this situation .

The Chart Pack proves what a lot of people in the property industry have been saying of late : the numbers confirm that the number of properties advertised as for sale has dropped nationally compared to a year ago , with a similar situation being experience across the capitals .

This lower number of properties available for sale has obviously affected the numbers of buyers .

With less property options , buyers are less likely to come to open houses , and far less likely to shop around .

The profile of buyers has changed now , in comparison to the type of buyer you

By JERONE BALAGTAS

would see a few years ago .

Buyers are now more likely to be those who really need a new property , or one trying to find a bargain , rather than people shopping around for potential investment properties or a place that takes their fancy .

But what is the root cause of these dwindling property buyer figures ?

REGULATORY CHANGES WIPE OUT BUYERS

LOCAL real estate agents from Western Sydney NSW said that they have started getting fewer people at their open houses since the APRA and regulatory changes came in for foreign buyers .

APRA regulates banks in Australia , and they have put a handbrake on home lending in a few ways .

They have made it more difficult for foreign buyers to invest in Australian property , by increasing mandatory

regulatory charges , such as the Foreign Investment Review Board , as well as increasing surcharges for foreign investors .

Another cause of low buyer numbers is likely the bank interest-only cap that APRA also introduced .

Australian banks have been encouraged to increase their reserves , and thus must limit their interest-only loans .

This has certainly also impacted the number of investors looking to purchase .

Various state governments have also increased land tax surcharges , as well as introduced State Government Transfer Tax ( i . e . stamp duty ) surcharges in the last few years , creating yet another added cost to the already intimidating cost of property in Australia .

These causes are supported by data in the August 2017 Monthly Housing and Economic Chart Pack , which shows investor credit growth is slowing while owner occupier credit growth is accelerating .

Lending to owner occupiers has also continued to lift .

Another interesting bit of data in the Chart Pack shows that consumers are

increasingly pessimistic about the state of the Aussie property market .

In the last eight months , pessimism has consistently outweighed optimism .

With fewer properties to choose from , and increased taxes and costs associated with buying a home , it ’ s easy to see why . With fewer buyers in the market , opportunities are available for those ready and able to buy .

The key to buying in a property market that has come off the peak is to ensure you are positioned to move quickly .

That means having your finance preapproved , which is best done with the support of an experienced mortgage broker . I can take you through the approval process and ensure you have the confidence to make an offer when you see an opportunity arise . •

Jerone is a local successful Filipino mortgage broker and one of the Executive

Directors of the One Solutions group , he has 15 years experience in the accounting / finance / banking industry . He encourages anyone to contact him regarding questions pertaining to home loans , investments and finance in general , e-mail at Jerone . BALAGTAS @ onelending . com . au or 0439 594 899 .