A level of uncertainty is building in the Australian property market. Auction rates are continuing to fall, property listings are slumping and foreign investors are beginning to dry-up, along with Aussie investors. Some are even talking about the possibility of the market heading back in time to 2003, where we witnessed a boom, then a bust.
But, this is where we have to ask ourselves, Is the Australian property market really this gloomy?
Undoubtedly, the answer to this question lies in what part of the market you’re focusing your attention on, and what type of property you’re interested in buying. For instance, at the end of 2015 more than 240 Australian suburbs were in the million-dollar median club. But now, these numbers are falling, especially in Sydney where overinflated prices are beginning to drop.
According to Domain.com, 11 Sydney suburbs have fallen out of the million-dollar median club, and 25 more are expected to join them.
Suburbs that have fallen below the million-dollar median are as follows:
|Suburb||Median September 2015||Median March 2016|
At the beginning of April, all capital cities, apart from Perth and Darwin, saw property price rises, based on year-on-year data. However, Melbourne, Brisbane, Canberra and Hobart saw a marginal price decrease, based on month-on-month data.
The figures are as follows:
|Capital||Price Change Year on Year||Price Change Month on Month||Price Change Year on Year||Price Change Month on Month||Price Change Year on Year||Price Change Month on Month|
Source: RP Data-Rismark Daily Home Value Index All Dwelling Types Houses – Units
Auction clearance rates, across the nation, were lower over April, but clearance rates remain just below 70%. However, 12-months ago these rates were around 80%.
National property price changes recorded to the 27th of April were as follows:
|Capital||Price Change Day on Day||Price Change Quarter on Quarter||Price Change Year on Year|
Source: RP Data-Rismark Daily Home Value Index All Dwelling Types
Real estate agents, based in Sydney, said prices in the south were becoming more realistic. Apartments in these suburbs had fallen by 8% in price. This was mainly due to the number of investors dwindling. Many realtors felt that this was attributed to tighter lending criteria, which has seen some investors only allowed to borrow 70% of what they could have 2-years ago. In addition, foreign investment has subsided due to legislation changes and poor economic circumstances in other nations.
Those looking to buy a home in Sydney are said to be taking the let’s wait and see approach’. Realtors are suggesting that many home buyers who were looking to upgrade had sold their homes when prices peaked, taking advantage of $1 million plus price tags, and that these families are now waiting until prices fall before making their move to buy.
If you’re looking to buy a new home, then some of the best places are in the newer suburbs where infrastructure investment is seeing median home prices rise. Some of the best across the nation during April were:
Middleton Grange N.S.W
Carnes Hill N.S.W
St Clair S.A
Gregory Hills N.S.W
Camden Park N.S.W
eChoice has brokers across Australia that can help you to make sense of not only the property market, but they can also help you find a home loan that is more affordable and suits your unique situation. As a leader in the home loan industry, eChoice brokers are able to compare 100s of mortgages and then tailor their selections to suit your situation.
Are you looking for a cost effective home loan? Then contact eChoice today.
Tags: Home Buying