Doom and gloom.
That was a popular sentiment earlier this year for the then declining house values throughout Australia.
But six months on from May’s low point, the latest CoreLogic Report shows the market has recovered and prices are on the up.
Here are the five key points you need to know about what the market’s doing.
Melbourne?s leading the way
Melbourne has enjoyed the highest growth rate in November with property values increasing by a healthy 2.3%.
This represents the highest jump in values in a month in a decade (since November 2009).
In the past three months, dwelling values in Melbourne have gone up 5.5% and have posted a 6% increase since May.
Sydney’s not far behind
Property values in Australia’s biggest city are also on the up, with values growing by 1.7% in Sydney in the last month. Sydney has also recorded a similar three-month growth to Melbourne, again coming slightly behind its southern counterpart with 5%, and 5.3% since the May trough.
Corelogic researcher Tim Lawless attributes the stronger growth in Melbourne and Sydney to the effects of a relatively tighter labor market and the strong population growth both cities enjoy. Furthermore, these factors are exemplified by improved access to credit and the lowest mortgage rate since the 1950s.
What about the rest? Which two cities are still in decline?
Australia as a whole has had a 1.2% rise in values over the past month, with all capital cities but Darwin and Perth recording an increase.
Both these cities have recorded a steady decline in the past five years which has led them to have the lowest and second-lowest median house prices respectively.
First home buyers are propping up the market
The high amount of first home buyers taking advantage of great value and relatively lower prices are contributing to increase buyer demand, with Perth and Darwin having the highest first home buyers in Australia.
Currently, all states and territories bar Tasmania offer first home buyers exemptions or discounts on stamp duty which is another added incentive for more people to enter the housing market. First home buyers are exempt from paying stamp duty on a home purchased for $650,000 or less in NSW and the NT, $600,000 in Victoria, and $500,000 in SA and Queensland.
Stable market conditions are ideal for first home buyers, and a stable one that?s growing means it?s the perfect time for first home buyers.
What does this mean for potential buyers?
If you’re thinking about buying a house, now is the best time to do so. The market is experiencing a very healthy period of growth. So if you buy now, expect your property to go up in value the longer you’re living in it.
If you’d like to get into the property market at the right time and with the right loan, let us help you take advantage of these excellent buying conditions. Book a complimentary appointment with us here.