The disappointing news may have left first homebuyers wondering if they should buy now or wait and see if the market continues to fall.
Addressing the above question, a blog published on Successful Ways says first home buyers should act now: here’s why.
If the RBA lifts the official cash rate, which is what financial experts are predicting will happen at the end of 2018 or early 2019, falling property prices won’t make a difference to your bottom line once interest rates increase.
"If property prices fell -3% but interest rates increase by +0.5%, the below infographic demonstrates that it’s still better buying now rather than waiting until 2019," explains Successful Ways.
Although it’s impossible to predict what will happen with housing prices in the coming months, Sydney Mortgage Broker, Scott Durrant says it’s not worth putting your life on hold.
"If you’re a homebuyer with the intention of staying put for the next 10-20 years, I don’t see the point of putting your life on hold in the hope of saving a few dollars based on a possibility that the market may fall,” he said. "By doing this, you could also risk interest rates going up and missing out on really low fixed rates."
"So if the market does flatten, it will pick up again. History has shown you will come out on top."