Is right now the best time to look for a new house?
It’s well-known that the property market goes through peaks and troughs, and it’s said to go through a major shift once every seven years.
Recent data from the Real Estate Institute of Australia (REIA) suggests the affordability levels at the moment have reverted back to figures from 2013. This could spell the end of the property spike, and the massive demands from buyers in some of the more prestigious suburbs, as properties become more and more affordable.
While Vaucluse and other suburbs surrounding the Sydney CBD with incredible views look likely to continue their domination of the prestige property market, there could well be a reduction in the median dwelling values across Australia’s most lucrative city. It looks to be the same for the two that fall into second and third place – Melbourne and Brisbane – as well.
What’s changed in the property market?
The CoreLogic RP Data monthly indices point out exactly how the value of dwellings has changed over certain periods of time. The current figures for Sydney suggest that the median house value sits at the whopping figure of $1,068,940, which is an increase of 3.61 per cent over the past month and 12.54 per cent when compared to the same point 12 months ago. Even units have skyrocketed, with a median value of $718,760, up 15.48 per cent in the last year.
That’s almost as much as a house in Melbourne, and it’s much more than one in Brisbane and the Gold Coast.
Melbourne offers more affordable house buying, sitting at a median value of $845,650, and Brisbane is even lower at $560,680. With this in mind, it’s important to remember the value of a buyer’s agent from Cohen Handler. Specialists in the housing market, particularly getting the right place for every client, buyer’s agents will be able to take all of your specifications and turn them into your dream home.
With affordability being at a low-point over the past three years, now might just be the best time to strike for your next purchase.
“The latest comprehensive data shows an improvement in housing affordability nationally with the proportion of income required to meet loan repayments going down to 30 per cent from 32.4 per cent in the last quarter of 2015 and 30.8 per cent a year ago,” said REIA President Neville Sanders.
Now might just be the best time to strike for your next purchase.
“New South Wales recorded the best improvement while the Northern Territory was the only jurisdiction to record a decline in housing affordability. The Australian Capital Territory remains the most affordable state or territory for home buyers while the strongest activity from first home buyers is seen in Western Australia.
“Seven out of eight states and territories recorded improvements, largely underpinned by lower loan sizes and moderate increases in income. A lower rate of growth in property prices, smaller loans and marginally lower interest rates resulted in lower average monthly loan repayments.”
Striking while the iron is hot
With the potential for lower mortgage repayments, and thus less money coming out of your monthly pay packet, the time for taking out a home loan and enlisting the help of a professional by saying “buy my house” is right now.
The record-low interest rate environment that Australia is experiencing is something that could really help to keep mortgage repayments low, or even drive them down further! No matter what happens on the finance end, if you’re living in your dream home with your loved ones, nothing could really be better anyway.
Owning your own property comes highly recommended, and is a fabulous way of having having control of your financial future. Get in touch with the team at Cohen Handler today to talk about what kind of property would be the best for you.