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Is the housing market moving into a correction phase?

By Kevin Kelly

Falling house values could soon become a feature of the national property market if people's predictions come true. Results of the latest CoreLogic RP Data – TEG Rewards Housing Sentiment Survey show two-thirds of Australians are worried about price corrections.

While this might not bring confidence to those selling property across the country, it could deliver significant advantages if you're yet to buy real estate in Bunbury. Although CoreLogic RP Data head of research Tim Lawless doesn't believe the falls will be significant, values will be down on recent levels.

The number of people who believe dwelling values will rise over the next few months has declined. Just 40 per cent of those polled said they believed this would be the case, down from 48 per cent in June.

People were also asked for their views on what's causing this recent correction in property prices. Almost a fifth (19 per cent) revealed they believed foreign buyers were responsible for putting extreme upward pressure on values.

Market cooling could be around the corner

This backs up results of the October CoreLogic RP Data combined capital city index, which showed even the hottest property markets in the country are showing signs of cooling. On a national basis, values were up 0.2 per cent from September and 10.1 per cent higher than October last year.

Mr Lawless noted that buyers have recently seen mortgage rates increase, which might be one of the main drivers behind this trend.

"We are also seeing approximately a 30 per cent premium on investment-related mortgage rates, tighter lending standards and borrowers generally requiring a larger deposit," he commented.

If you're hoping to make the most of your budget when buying real estate in Bunbury, be sure to get in touch with our team. With our knowledge of the local market, you could be moving into your new home sooner than you think.

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