Buyers and sellers, buoyed by interest rates at 50-year lows, are paying close attention, wondering whether it’s time to exit the rental market to become a homeowner, upsize their home or buy an investment property.
But it could all be a recipe for a property bubble, according to some economists.
The overall trend of the property market is still obscured by the effect of the bulked up home owner’s grant, although there are “signs of life” in most sectors of the housing market.
Though lending practices in Australia have become even tougher since the onset of the credit crunch, punching a hole in the argument that people who borrow now will come unstuck once interest rates begin to rise.
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