Should You Buy a House When Australian Property Prices are High?June 1, 2021
Here is a piece of excellent news for home buyers, dwelling prices are going up in Australia. So what does this mean for homeowners and buyers? Let’s dig deeper, shall we?
Core Logic reports that the value of properties in Australia is rising at its fastest rate in 17 years. There was a price surge of 2.4% in Melbourne and 3.7% in Sydney in March. The abrupt price increase was prompted by the combination of low mortgage rates, incentives given by the government for first-home buyers, housing preference, and increasing economic improvement.
Sydney tops the median property value, followed by Melbourne, Canberra, and Hobart. The more affordable locations are Perth, Adelaide and Darwin.
Banks released a home value forecast for 2021. ANZ bank accounts that house prices are predicted to rise to a solid 17% through 2021 at a national level. Houses are rising by 19% in Perth, Canberra, Brisbane, and Melbourne. There’s also a 19% increase for properties in Sydney, and 13% in Adelaide. The Commonwealth Bank followed suit, increasing its property projection from 8% to 10%.
In March, the Reserve bank of Australia (RBA) warned people of the house price boom. Aside from the factors stated earlier, Philip Lowe, the RBA governor, pointed out that low population growth affects the housing market. The idea of low population growth could offset the surge of home values. Based on the RBA model, an additional 9% is expected to ensue in 2022 and another 8% in 2023. This computes to 25% cumulative growth in three years.
Based on these optimistic forecasts, what gains can home buyers and sellers achieve?
Benefits of Property Price Upsurge for Home Buyers
The current trend in real estate in Australia is a win-win situation for homebuyers. Therefore, taking advantage of the current interest duties will save you money. The expected house price increase means that the property’s value purchased today will increase in two years. For home investors, this means you only have to reside in the house for a short time and gain a hefty revenue when you sell it at its peak value.
Another plus factor in taking advantage of today’s property market is the low interest rates offered by banks for home loans. First-time home buyers need to note that interest rates in the home mortgage are not permanent. It changes over time.
The mortgage interest rate is the most significant factor in purchasing a home. Thanks to the pandemic and poor economy, mortgage rates are at their lowest point in years. This means that even though dwelling prices continue to go up, this is the best time to buy and apply for a home loan by availing of a mortgage plan suitable for your needs.
Another bonus for first time homebuyers is the First Home Owner Grant (FHOG) for the Australian government. FHOG is an assistance program providing first time homebuyers with a one-off payment on the deposit for their first house purchase. The award differs for the different states, so make sure to check your eligibility and the grant awarded.
Benefits of Property Price Upsurge for Home Sellers?
The current property trend is also beneficial for homeowners who are thinking of upsizing or downsizing their homes. As the economy starts to rise back up once again, there is increasing confidence in making large purchases. In addition, the low interest rates are fueling homebuyers to take advantage of the chance to snap up a home. This is why home sellers are getting good results with fast turnarounds and great pricing.
The rising property value is great news for both buyers and sellers. That said, is it a good time to buy or sell a house? The answer to this query is another question: are you ready to buy or sell your home? In the end, both acts include a big decision. While you have the assurance that the real estate is good and solid and stocks and interest rates are low, in the end, you have to consider your readiness both mentally and financially.
For homebuyers, you have to consider the location and market value. Is the place worth investing in? Are you buying a pre-owned or a newly built home? If so, you must ensure that you only purchase from an experienced builder, proven to build reliable homes for you and your family.
For home sellers, you need to do research and know your current property value, the current demands in your area and how much you can price your home to take advantage of the current market status. If you are new and uncertain, it is best to get help from a trusted company that can help you sell your home at its optimum price.
BuildQ group has been in the property industry for more than ten years and completed hundreds of projects. We are composed of teams of engineers, architects and experts in the construction and housing industry. BuildQ Group is committed to building your dream home that conforms with Australian international safety standards. This year, we have extended our services to selling pre-owned houses helping home sellers sell their property value at its optimum price.
Take advantage of today’s property trend and purchase your dream home!
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