As property prices hold, home loan research is even more crucial

National home prices rose for a third consecutive month in March, as limited supply and strong demand continue to hold up the property market, according to the PropTrack Home Price Index.

The latest report shows that home prices were up a touch (0.13%) nationally in March, with all capital cities aside from Brisbane, Hobart and Darwin recording rises. 

Of course, for this reason, national indexes need to be kept in context: where the headline number suggests home prices have reversed their general downward trend, we need to remember that figure represents an average only. 

For example, the national average was led by Sydney (+0.27%), Perth (+0.24%) and Melbourne (+0.12%), the three largest jumps. But Adelaide and Canberra only saw marginal increases, while Hobart (-0.43%), Brisbane (-0.06%) and Darwin (-0.10%) each saw monthly declines.

These figures aside, an interesting view of current prices is that they are 30% above their pre-pandemic levels. This means there really hasn't been much of a price slump during interest rate hikes over the past year.

Furthermore, PropTrack notes that while interest rates have been the primary driver of price falls of late, the recent upturn has been influenced by the limited supply of properties for sale.

So tight supply together with fewer new listings has led to a pickup in competition among potential buyers. Proptrack says this has buoyed values in March. 

This type of scenario can also make it tough to pick up a deal, especially in in-demand suburbs. It means that prospective buyers need to be even more strategic about shopping around. 

With this in mind, here are a few tips for improving your chances of finding a better deal and possibly a more affordable home:

• Consider looking one or two suburbs over where demand can be lower and the distance to transport links or the local shopping centre is a few minutes more.

• Keep an eye out for smaller homes where limited floor space or less land might dissuade some buyers. 

• If you can, scout suburbs that don't have popular schools in them because those areas tend to come at a premium price. 

• Older properties that need a bit of work or repair usually draw smaller crowds. If you budget for some small repairs you'll often get a better overall asking price from the vendor. 

• Research the top home loans because there are some more affordable options to consider in this current high rate environment.

If you’re ready to start your property journey, browse our home loans comparison page where you’ll be able to filter your search by rate and type, or simply browse the selection below.