PHOTO: Sydney – Australia
A leading real estate expert has raised concerns about the long-term stability of the booming property market.
Real Estate Gym founder Tom Panos would not be surprised if the market dropped off in two weeks.
The market hit a bump in 2017, and property prices dropped across Australia. Then, earlier this year, the tide began to change, and fast.
With the unexpected results of the federal election, and the banks lowering interest rates and making it easier to get a loan, strength returned to the market, Mr Panos told Real Estate Business.
“All of a sudden, it created the quickest turnaround in living memory,” he said.
“The market was down and out, and in a matter of six to eight weeks, we saw Sydney and Melbourne rebound strong, nearly rebounding the losses they suffered in two years.”
The strong rebound in property prices saw a lot of property owners rush into the market to try to get in and cash out.
“They were concerned this is going to be the height of the market for some time,” Mr Panos said.
As a result of the spike in prices, property buyers who once feared of missing out now have patience because prices grew too quickly.
Mr Panos believes the market hit a plateau two weeks ago.
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