The property market today stands in stark contrast to 12 months previous and as we enter the new year, agents can no longer rely on a booming market to close a deal. Instead, as price heat subsides, the true value of an agent will be tested in 2016.

The well documented shift in the housing market over the last quarter of 2015 has resulted in a more even power balance between buyers and sellers, with the vendor favourable conditions of early 2015 now a memory.

Buyers are generally exercising greater caution in making decisions when it comes to property.

Encouragingly, demand remains strong and vendors can still go to market with confidence, however the double digit price growth of the past 12 months is not on the cards in 2016.

We expect competition between agents for listings to intensify in the New Year, even though there’s more stock coming onto the market, with the emphasis on an agent’s ability to execute the right strategy and negotiate the best deal.

In 2016 agents will need to call on distinct local market experience and knowledge to set themselves apart. Mass produced campaigns are no longer cutting it, with the advent of new technology, social media and online reviews highlighting the need for agents to provide a great customer experience every single time.

Recent development activity has given rise to a new supply cycle, especially in Sydney, and is coinciding with a cooling in prices to alleviate concerns of a major correction.

The price heat that’s come out of the market in recent months has served to alleviate bubble concerns and should be viewed as a positive for the industry – and for mortgage holders.

While some commentators have flagged a potential further cooling in house prices amid broader challenges in the economy, generally speaking we expect that if interest rates stay stable, then housing market conditions will also remain relatively stable.

Where 2015 began with investor activity rampant, the year ended with investors backing off in response to tighter lending criteria from the banks and the general sense of caution washing through the market.

But if the door is closing somewhat to investors, another may open for first home buyers. In 2016 conditions may at long last swing in favour of this long forgotten section of the market.

New supply is up, investor lending is down and the price heat of 2015 has subsided. The market cycle has potentially turned to support those looking to get into the market.

It’s up to Government now to provide the necessary support as well. Issues like stamp duty continue to unnecessarily plague affordability, ensuring a significant barrier remains for first home buyers at a time when other factors are aligning. The industry’s need to keep up the pressure on Government to abolish this counter-productive tax is clear.

Whether conditions in 2016 translate to greater opportunities for first home buyers remains to be seen, but for the first time in years getting a foot in the door does not seem so insurmountable.