2023 data demands homebuyers have a sharper eye

Getting a fix on the Aussie property market has been challenging lately. While prices spiked generally during the pandemic, ongoing interest rate hikes saw a normalisation of sorts. 

But when home values dip and flatline for too long, some people start to get worried. This is where we are now, waiting and watching. Although there have been some signs of positivity in the property market.

For example, a recent report by researcher Corelogic suggests that the proportion of Australian suburbs with rising home values could start to "trend higher". 

The report says that if the current cycle mirrors the past, the higher-tier markets of Sydney and Melbourne are likely to show more suburbs in upswing (of values) over the coming months. This is scene as favourable by many observers - though maybe not for first time buyers.

However, there is a curveball in the data. The prevalence of highly affordable regional markets in the current 'top performing suburb' list is quite different to what we’ve seen in previous inflection points, says Corelogic, and this warrants attention.

Sydney topped the capital growth charts only a few years ago, but recent numbers show a decline in values in the Harbour City and an upswing in regional spots. Corelogic notes this could reflect a hangover of the pandemic and the interest rate environment, where affordable regional property is desirable.

Furthermore, Corelogic's analysts have indeed noted more positivity in the housing market in recent months, and this is despite uncertainty around more interest rate jumps.

The Corelogic Home Value index rose in March, for instance, which basically means there's been increased selling and an estimated rise in property values. This can all get rather complicated but, in a nutshell, the data is indicating greater market activity and such activity can be good for sellers - but also encourage buyers to get amongst the action too.

Getting a read on home auctions

What's really been difficult to pinpoint is where auctions are headed as we approach the middle of the year. Yes, there's definitely been more offered at auction in recent months, at least in major markets like Sydney and Melbourne. However, the numbers have been a bit up and down and that can also make it hard to time when to buy - or lock in a home loan for that matter. 

How the property arrow turns may depend on the Reserve Bank's next move, though it's not the only factor at play. 

"There is the chance a further rate rise in May could stunt the green shoots observed in the property market over the past two months," says Corelogic. "However other factors look to be outweighing the downside impact of high interest rates.

"Fundamentally, demand remains strong amid a sharp rise in overseas migration, together with lower than average levels of advertised supply and extremely tight rental conditions."

Whichever way you take all this information, doing your research will always keep you ahead. At Mozo, we do a lot of the hard yards for you by comparing the best home loans on the market. Start your property buying journey by first checking out some of the top loan options below!

Compare low interest rate home loans - last updated 26 May 2024

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* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

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