Property values have fallen by six per cent since the start of 2011, it has been said.
There could be more people considering taking out home loans after it was said house prices are falling.
According to the Real Estate Industry of Victoria, property values fell by six per cent in the first three months of the year.
While Louis Christopher of SQM told Smart Company that he does not think real estate prices decline as much as this during the quarter, he said: "Vendors will have to lower their price expectations to meet the market."
He noted that Melbourne in particular is one area that could see property values drop as it is currently "oversupplied with current listings", which could also have an effect on
real estate agent commission.
There are therefore more vendors willing to sell their property than there are buyers ready with a home loan to purchase one, forcing costs down even further.
This could mean that if bank rates for potential property owners improved, the entire market could benefit.
However, the latest mortgage report from QBE recently revealed that there has been a decline in the number of first-time buyers willing to get on the housing ladder since 2009.
By Nate SawyerÂ
