There is no doubt that a hot property market, where homes are being snapped up in record time, can lead some to think that it is best to rush in and buy. But no matter what the climate it is important to have a full building and pest report.
With the latest lockdown firmly in the rear view mirror and Melburnians enjoying increased freedoms, the city’s auction market is back with a bang. New listings and clearance rates are on the rise, and there’s a renewed sense of optimism about selling properties ‘under the hammer’.
The Reserve Bank of Australia determined to keep the official cash rate at its current record low of 0.1 per cent at its November board meeting, but opened the door to rates rising in late 2023, earlier than its previous indications.
This month, CoreLogic announced the national property market had experienced the highest annual pace of growth since June 1989. Housing values were up 20.3 percent over the past year and in Melbourne, values had soared 15 percent.
While few areas in Melbourne missed out on a lift, the rise in property values varied from 9.5 percent in Melbourne’s western suburbs to 30 percent on the Mornington Peninsula.
Borrowers will face tougher serviceability tests when applying for a new home loan after new requirements were announced by the Australian Prudential Regulation Authority this week. Under the changes, borrowers will need to demonstrate to a lender that they are capable of making repayments even if interest rates rise by 3 per cent or more above the rate of the product they are applying for.
CoreLogic’s latest quarterly Pain and Gain report reveals the strength of the current property market for sellers. Tight listings, record low mortgage rates and extraordinary growth in housing values have led to strong resale gains for vendors, particularly in regional and tree-change markets, it reports.
When a property market is surging, the question of how you avoid over-capitalising carries even more potency. Melbourne’s property values are up 15.6 percent for the year to date and a sustained boom is predicted to deliver up to 10 percent growth in 2022.
Street appeal is the x-factor that can have would-be buyers fall instantly in love with your property. But it’s not a mystical thing. Rather, it’s a proven strategy of ensuring the front of your home is so appealing that it stops people in their tracks and musters up feelings of instant attachment.
Thinking of selling or buying property? Spring is believed to be the peak of the real estate buying and selling season, but in 2021 does that still stand?
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