Property buyers and sellers alike tend to love spring, but the big question everyone wants answered is whether or not we can expect house prices to go as wild as they did during last year’s spring selling season.
The general consensus is that we’re going to see a steady upswing in demand this spring thanks to two recent interest rate cuts and increasing market confidence.
Figures from CoreLogic Hedonic Home Value Index reveal that property prices were up 1.3 per cent in Sydney and 1.1 per cent in Melbourne in the month of July, which shows good signs for the months ahead.
However it’s unlikely we’ll see the same kind of frenzy we saw last year, largely thanks to tougher conditions that have since been introduced to help steady the rate of investors and foreign buyers entering the market.
Interest rate cuts are starting to entice investors back into the market though, so much so that there are concerns that we will see further lending conditions introduced in the future.
Auction clearance rates, another major market indicator, are also on the rise.
The weekend before spring officially hit, Sydney experienced its highest auction clearance rate in over a year.
The auction clearance rate in Sydney has been above 70 per cent for 18 consecutive weeks, and in Melbourne it has been above 70 per cent for 7 consecutive weeks.
These are good signs for the market going forward, however there may be some factors that will deter some buyers, one of which is affordability.
As prices grow, so too does the issue of affordability in places like Sydney and Melbourne and this is pushing a lot of investors and first home buyers out of expensive neighbourhoods and towards more affordable suburbs on the outskirts of highly coveted blue chip areas.
For investment buyers, it’s a good idea to do your research before jumping into the market. There will be a lot of factors at play in the months and years ahead and it will pay to carefully consider where you buy if you want to make the most rewards.
For any advice about what is going on in the Bacchus Marsh market, contact the team at Arbee Real Estate.