After what seemed like endless increases and flying in the face of the general global experience, the growth of Australian housing prices has ground to a halt.
In June, real estate prices fell by 0.7 per cent, the first decline in 17 months. Furthermore house prices grew by just 0.1% over the quarter.
Clearly interest rates and the stepping back of Federal Government stimulus program are having an effect. There are also election-related jitters and share market concerns playing their role.
Those selling are proving less-inclined to chase the highest possible price which are increasingly being seen as unachievable. And those buying are not willing to pay in excess of fair value.
Ultimately, such a normalisation can only be a good turn of events for everyone.