Sick of low supply? It could be about to change
The housing market in Australia has long been struggling with supply and demand, with the latter far outweighing the former.
This is leading to a largely competitive market, where a lot of buyers are being priced out by those with either more capital to spend, or more experience in negotiating. Particularly for first-time buyers who only have the highest bid to get them into a home, it's proving to be a tough time and many people are having to look at alternative options.
While buying a houseboat and living on the water might be attractive to a number of people, it doesn't have to be the first solution you turn to. A buyer's agent from Cohen Handler will use their expertise in the finding and buying parts of the property process to make sure you end up living exactly where you want. Couple this with the fact that more residential buildings are being approved for construction and the landscape could soon look very different for buyers.
Where are homes being built?
It's all well and good for new houses to be popping up around the country, but if they're not where you want to live, then it won't do your house hunt any good.
"There were over 220,000 dwellings commenced in Australia during 2015 – a new annual record."
According to the Housing Industry Association (HIA), Victoria has taken out top spot in the biannual Housing Scorecard as stated in a June 23 media release, which New South Wales had previously held as the clear winner.
"There were over 220,000 dwellings commenced in Australia during 2015 – a new annual record," commented HIA Economist Geordan Murray.
"However, there were significant divergences in conditions for residential building around the country. The eastern seaboard states have been the strongest performers. There is little to separate the top two ranked states, but it is Victoria that has edged out New South Wales to take the top spot. With nearly 70,000 dwellings commenced in 2015, it is not all that surprising that Victoria was number one."
As Melbourne and its wider constituents continue to develop at an impressive rate, there are more reasons than ever to move into the state. Developers are building new residential dwellings, and these will soon be for sale. When that eventuates, you could get into a brand-new home in Australia's fastest-growing state and be ahead of the curve for capital gains.
Even for renovated homes, a brand-new bathroom or kitchen space, along with a fresh coat of paint all over could make moving into a new piece of real estate far more enjoyable.
"Australia's home renovations market is very much in recovery mode with 2015 marking the second consecutive year of growth," said HIA Senior Economist Shane Garrett in a June 16 media release.
"The importance of home renovations activity is often underestimated – it accounted for about 35 per cent of total residential construction during 2015. With new home building set to decline over the coming years, the expansion of the renovations market means that its importance will only increase."
More people are deciding to keep their homes and instead spruce them up to keep pace with modern styles and aesthetic standards. That might appear as if it'll hinder your ability to get into one of these properties, but a buyer's agent can make accessing an off-market home easy.
Before a home is listed for sale, a purchase can be agreed, assuming the buyer offers enough money and the seller accepts. The expertise of a buyer's agent will help considerably in this case, as they'll know the true value of a home for a particular area and advise on the best first offer, and consecutive offers if required, to help get you into your dream home.
Why are people not wanting to sell?
Something that is contributing to the Australian Bureau of Statistics' (ABS) recording of a 1.2 per cent increase in the approval of dwellings between March and April this year, is the fact that people need somewhere to move once they've sold.
If there is nowhere to go once a family has moved out of their existing home, what are they going to do? They'll be joining the thousands upon thousands that are already looking for a new place, and competition will be fierce.
Thus, until people have another property lined up, they're unwilling to sell, or even list. This makes off-market buying even more attractive, but you'll need to ask a buyer's agent to buy your house for that to be available. In a dry market such as what is currently being experienced around the country, people are finding it much more difficult to find another piece of real estate to move into, which is restricting the number of homes that are actively for sale.
New buildings are shooting up all over the place, and a lot of existing places are being renovated as well. If you want to give yourself the best chance of success to own one of these dwellings, get in touch with Cohen Handler today.