Housing sales have reached a 12-year high, says CoreLogic

Aerial view of houses and streets, as property sales surge to a near 12-year high.

In the year to August, CoreLogic estimates there have been 598,000 house and unit sales across Australia.

This represents the highest annual housing turnover recorded by the group since 2004, and is a massive 42% increase compared to the previous 12-month period.

The numbers are pretty consistent across states and territories. Each state except Tasmania recorded an increase well above 10% in year-on-year home sales, with CoreLogic suggesting Tassie is trailing behind based on supply shortage rather than a dip in demand. 

The most significant jumps were seen in the previously weaker property markets of Western Australia (62% rise) and Northern Territory (59% rise).

Overall, CoreLogic credits the high turnover to a number of factors including government incentives, boosted household savings levels in 2020, and the loosening of loan policies alongside record-low home loan interest rates.

While this upward trend in turnover is expected to continue into 2022, pull back is forecasted for the medium-to-long term. 

This projection has a few key drivers including worsening housing affordability in terms of the ratio of housing prices to income, coupled with a renewed focus on lending standards to combat prospective buyers taking out loans they can’t reasonably afford. With the pandemic drastically altering migration flows while residential construction continues, the gradual uptick in migrant buyers will also be set back, affecting turnover rates if new buildings sit idle.

Core considerations for home buyers right now

All this information might leave prospective home buyers wondering if now is the best time to invest in property. While everyone’s situation will be different based on their goals and personal financial situation, there are a few things potential buyers might want to consider before they begin their house hunt.

Property prices in your area. Regional property markets have been booming over the last 18 months, with city dwellers moving to regional areas after transitioning to remote work. While city prices continue to climb, this has meant previously more affordable regional areas are also under the pump. So, be sure to keep this in mind when scouting out potential new home turf.

Home loan interest rates. Mortgage rates have dropped to record-low levels alongside the national cash rate during COVID-19. This means that, despite home prices soaring, you can access more affordable financing to get into the market. While variable rates can shift any time and fixed rates can increase after the set timeframe, it’s wise to take advantage of more affordable home loans available right now.

Government incentives & support schemes. There are a range of incentives you may be eligible for which could give you an extra boost towards purchasing a home. Many of these government and bank schemes are targeted at first home buyers and families. We’ve created comprehensive guides on the main options you may want to investigate:

If you’re ready to begin your home loan hunt, check out a few of the options below as a starting point.

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