Apply for your first home loan as values drop

If you've been waiting for property values to fall before applying for your first home loan then now could be the time to start thinking about making your move.

The RP Data – Rismark home value index recorded its first fall in a year last month, with capital city dwelling prices down 1.9 per cent.

RP Data's Tim Lawless noted that while this might be a result of seasonal factors, there's also every possibility it could point to a wider trend in an article earlier this month.

He explained: "Historically, housing market conditions have softened in April and May as the market rebalances from what is typically a seasonally strong first quarter and also as a result of cooler climatic conditions during the autumn and winter months."

"Outside of the seasonality, we have been seeing signs that the housing market is at or approaching the peak of the growth cycle."

Values have shown their greatest fall among the nation's most expensive properties, which may suggest you could get more for your money when looking to move up the property ladder. 

Mr Lawless revealed that the most expensive quarter of capital city property prices have seen values decline 0.5 per cent, while the more affordable end of the market rose 2.8 per cent in the three months to May.

Sydney has been the main driver of property price rises over recent months. The current growth cycle got underway in June 2012, which has seen capital city property prices rise 13.9 per cent.

Much of this rise has been the result of prices increasing in the Harbour City, where property values have risen 21.1 per cent since May 2012.

A growth phase usually lasts around two years, so it could be wise to say that this trend is starting to reach its expiry date and that values will continue to fall.