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Drop in buyers and higher interest sees property sales slow

Australian property has been booming for quite some time. Prices have risen time and time again across the nation as a strong level of demand, coupled with the fact that interest rates have remained low, has meant more competition among those trying to buy each property that comes to market. 

However, while this has been going on, there have been constant fears among many people that it would lead to the sort of property bubble that has been a problem in a number of countries across the world in the last few years. But this seems not to be the case, with the market now showing signs that it has the maturity to self regulate. 

With prices reaching what many have described as either a peak or an affordability ceiling, the last few months have been uncertain, but now the falling number of buyers and a higher interest rate has meant that there are fewer sales taking place, helping prices settle into a much steadier climb than we have seen in recent times.

The biggest indicator of this has been Australia's centre of the property boom, Sydney. While there are still many positive reasons for people to want to invest in property, the city has shown that it doesn't always need to be exhibiting a boom in prices. Over the last quarter, there has been a severe slowdown in rises compared to earlier periods, but the increase has still come in at 3.2 per cent over three months. 

It's a similar story in Melbourne, where prices have now increased by a little over 2.5 per cent on a quarterly basis, and in Adelaide and Perth where quarterly growth now sits at less than one per cent. Prices are still increasing, which is fantastic news for property investors, but at a rate that suggests long-term growth may now be much more of a possibility rather than Australia being just another country on the boom and bust list. 

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