The reality is, there is always an adjustment after an extended period of growth. In other words, the waves drop in size and the winds and tides are less favourable; followed by a relatively static period (flat period of no surf) of slow or no growth.
It’s like the tide
The tide of interest goes out, then we have the period of what surfers call an 'Ebb tide', which is the period between high tide and low tide during which water flows away from the shore.
Soon the tide will change again, the banks (together with APRA) will adapt their funding policies, improve their processes and the government will create initiatives to stimulate the property sector in order to fix the industry which is the backbone of our economy.
The winds will eventually change and turn offshore, the tide of interest will come back in and Bomboras (Bombora is an indigenous Australian term used to describe large waves breaking over a shallow area that is located some distance from the shoreline and beach surf break. In slang it is also called a 'bommie') will return.
There have been many cases of wipeouts (being capsized by a wave while surfing) poor investment decisions which have kept people out of the market. Like a dedicated surfer, buyers that consistently study the conditions (market) will be rewarded with the ride (purchase) of a lifetime. This will come when there are fewer people in the water (buyers in the market) and less people paddling for waves (less offers on properties).
The dedicated surfer is brave and will look for the window of opportunity, when no one else is out in the ocean. They will take advantage of marginal conditions like when the wind swings momentarily and a perfect wave presents itself. They will paddle hard (negotiate hard) and ride one of the best waves (property purchases) of their lifetime.
Go out there and find that Bommie!
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