Quarterly Residential Market Update
Today’s buyers market could be the best time to upgrade your home, break the rental cycle or build your investment portfolio.
The past quarter has seen a drop in median home values by 0.75% to $517,000; but as a home owner, fear not, as growth over the remainder of the year will remain stable with annual growth over 2016 being projected at 3.8% as calculated by Knight Frank.
Recently the Reserve Bank of Australia (RBA) lowered the cash rate to 1.50% which could have played a part in steadying home prices. Although this did not shy buyers away from the market with house sales volumes up 5.3% in June 2016. According to NAB:
Near term strength likely to be temporary, with a more subdued market expected for 2017.
Apartment sales are on a steady rise, up 4.0%; and along with developers boosting the pool of available apartments, (after recognising buying and renting demand for high density living), there is a festivity of entry level investment and first home buying options for the market to capitalise on.
With apartment sales rising, and values remaining at a 5.2% annual growth throughout 2016, now could be a great time to get in early and ‘ride the wave’ of the apartment boom. Although according to Emily Piesse, there are fears an oversupply of apartments within the market could see prices crashing (via ABC).
Auction Clearance RatesFor the period 08 Aug 2016 to 14 Aug 2016
|State||Clearance Rate||Reported Auction||Sold||Not Sold|
In summary: the residential market is up, but not booming.
- Sales of houses and apartments are up 5.3% and 4.0% respectively.
- Value of houses has dropped slightly (0.75%) although is likely to remain up over the remainder of the year at 3.8% growth.
- The value of apartments is healthy (up 1.9%) and is rising, however there are some risks in pockets of oversupply.
- The RBA’s cash rate target has dropped to 1.5%.
SwitchMyLoan’s hot tip: Now could be the best time to take the plunge before the market is expected to settle during 2017.
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