DRY OUTLOOK: Warwick top-selling agent Ben Lubben said it was hard to entice buyers to the property market when lawns were dried up and brown.
DRY OUTLOOK: Warwick top-selling agent Ben Lubben said it was hard to entice buyers to the property market when lawns were dried up and brown. Jonno Colfs

Property market dries up with drought and banking commission

BUYER activity is hitting the slumps, and Warwick property sales consultants say there are many factors to blame.

The harsh effects of drought are trickling down to the housing market, where sales consultants struggle to entice buyers to dried-up lawns and dusty paddocks.

Southern Downs Realty sales consultant Ben Lubben said there had been a significant downturn in house sales and listings compared with previous years.

"Of course brown lawn doesn't attract as well as a nice green lush lawn. I think there is more to it."

Mr Lubben said drought might be having a subconscious effect on buyer psychology.

"Even in the residential market, I think it is something we all feel," he said.

He added that even a few millimetres of rain made a huge difference to market activity.

The short downpour two weekends ago resulted in two contracts and five new listings for the Warwick sales consultant.

"Even just that three or four millilitres a week ago has really shifted it.

"We have seen a big turnaround," Mr Lubben said.

Rural sales consultant Rob Doro said agricultural property markets were also hurting in the drought.

 

TAP OFF: Ben Lubben drought affects the psyche of everyone in the country, whether you're a rural or urban customer.
TAP OFF: Ben Lubben drought affects the psyche of everyone in the country, whether you're a rural or urban customer. Jonno Colfs

"It is hard to get buyers to see past the current dry situation," he said.

Prices were steady, but it was taking longer to sell houses and rural properties, he added.

But Mr Lubben said there were other factors at play.

Tighter lending restrictions as a result of the ongoing banking Royal Commission meant prospective buyers were finding it harder to commit to buying a house.

Some leading banks have come under fire in the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, which was established in December last year.

Mr Lubben said the commission was having impacts on home buyers that weren't being publicised.

"Banks are really knuckling down on your requirements for lending and making it a lot harder for people to borrow," he said.

"Our big banks have stepped out of line and we are bearing the consequences eventually."



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