News

'Boom fatigue' starting to bite as property hopefuls give up the ghost

22 April 2021

Property seekers in Melbourne and indeed other sizzling markets around the country are leaving the market suffering ‘boom fatigue’.

Soaring house prices and heavy competition are getting too much for some beaten house hunters who are pulling up stumps and waiting to see if prices fall before having another crack.

Melbourne mortgage broker Chris Foster-Ramsay told Domain a good portion of his approved customers were changing tack after trying and failing at multiple auctions.

“The majority are saying the market is going bananas and we’re sick of getting blown out of the water,” Mr Foster-Ramsay said. 

“It’s the emotional effect that it has when you find a place and are doing all the right things; putting in an offer at the top of the asking price range plus a percentage on top of that — and you’re just getting swiped, just getting knocked out,” he said. 

“People want to buy in the area they grew up in, where they have always wanted to buy and are now finding that they can’t afford it.”

Domain figures show Melbourne’s median house price jumped 17.9 per cent over the year to March, to hit $1.15 million.

Jodi McKeown is from mortgage broking firm ProSolution Private Clients and said first-home buyers were some of the clients feeling the frustration.

“First-home buyers that have been to several auctions, and they’re continuously going over the 10 per cent extra they were expecting to pay — they are just walking away,” she told Domain.

“Others, if they’ve got capacity, they’re paying a bit extra to buy.”

However, Sydney buyer’s agent Michelle May said walking away from the market could be a dangerous option, and it could be best to persevere to get into the market rather than hope prices fall.

“If you’re thinking things are going to change anytime soon, that’s super risky,” she said.

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