Channi Kehal, from Laing and Simmons Blacktown, says the change in the property in the last month or two is a result of increased interest rates, tightening of finances and change of lending practice.
However he says the change in property sentiment provides an ideal opportunity for first-time home buyers, as well as investors who were unable to buy when the market was at its peak.
“The biggest divide between buyers and sellers right now is that the recent changes and information in the media has given buyers a lower perspective, while sellers are still looking at recent sale prices and have a higher perspective,” Channi said.
“This results in a much higher disconnect between the two, and overall Sydney is seeing a drop in auction clearance rates. In Western Sydney auction clearances have dropped from 65 percent to under 60 percent in just the last few weeks.
“While Sydney-wide the drop is even more significant where in some cases it has dropped from 80 percent to 60 percent. We will see more changes next year when buyers who over-borrowed may need to get rid of their property,” he said.
According to Channi the cooler property cycle is the perfect time to consolidate property portfolios, and look for good investment and lifestyle opportunities.
“This is the perfect time for astute buyers who know the market to purchase a property. Some investors may step back because they know some buyers will also choose not to sell at this stage. However those who are educated on the property market will still look at the best opportunity to buy,” he said.
He said Western Sydney presented unique opportunities for investors and homeowners. “The central Blacktown area has been rezoned to R4 which will bring in more high density and drive prices higher.
“This area is also becoming more multicultural with people coming in from all over the world. This change in demographic is making it a very lucrative place for property investors,” he said.
Echoing the same sentiments is Duncan Tonkin from Clarity Finance who believes the change in lending gives people a good chance to explore other opportunities for investment.
“Most of the big lenders have increased their rates, but there are a lot of lenders in the second tier that have not increased their rates which makes buying properties still attainable.
“This is a good time for people to review their current situation and look at opportunities to save money and reach their goals,” he said.
Duncan said his company with more than 30 different lenders which gives them flexibility when working with clients in different circumstances.
Both Duncan and Channi say the slower property market is an ideal time to focus on building a property portfolio, or taking the initial step to buying a first home.
