It’s true, the property market isn’t in the best shape. But expectations for house prices have shifted, so now may be the time for buyers to take out a home loan and lock down a property purchase.
While we are currently en route to prices being at the bottom of the market, Aussies are becoming increasingly convinced that they will rise again over the next 12 months.
This is according to ME’s second Quarterly Property Sentiment Report which was conducted earlier this month and compared to its first report in April 2019. Events like the Federal Election, APRA’s proposed serviceability changes, and two RBA cash rate cuts occurred between reports and may have affected Aussies feelings around the property market.
The July report found that fewer respondents (17%) expected prices to fall over the next 12 months (11% less than in April), while the majority (38%) predicted prices to rise.
In the country’s most populated states, NSW, QLD and VIC, significantly more people foresee prices climbing.
RELATED ARTICLE: First home buyers in luck as APRA loosens mortgage restrictions
Mozo’s Property Expert, Steve Jovecvski, says for Aussie buyers, especially those in Sydney or Melbourne, there are some solid reasons to get in and buy now.
“The serviceability ratio has been reduced, so it’s easier to show you can service debt and get a home loan - clearance rates are also high, which shows strength in the market,” Jovecvski said.
“Auction levels are also low, which means there are less available properties which puts pressure on buyers with less options thus pushing up prices, plus there’s a high demand for older apartments now because of all the recent defects on some new apartment buildings.”
According to ME, 61% of Aussies in the housing market were happy with house prices tumbling, as it gave them an opportunity to buy a property.
This was particularly true of the 86% of first home buyers, who were even more pleased with the price movements than those who responded to the survey in April.
And with some home loans rates now below 3.00%, buyers could get a home at a low price while saving on interest repayments as well.
RELATED ARTICLE: The new way to borrow that’s got Aussies hooked