As we reach the halfway point of the spring buying season with a slip in property values, it calls into question what exactly is causing dwelling values to fall. And more importantly, how does this affect you?
How has your city performed?
The housing market across Australia continued to lose steam last week with dwelling values slipping 0.5%, taking the overall market to 3.5% below the recent peak. To put this decline into perspective, national dwelling values haven't fallen this much in a year since 2012.
With such a wide-spread weakness across the housing market, it's clear that the tighter lending conditions are putting a drag on housing demand and subsequently impacting the performance of housing values across most areas of the country.
While Perth and Darwin have been in recent headlines after their four-year downturn, the weakest conditions continue to be felt across Australia's two largest cities, Sydney and Melbourne. According to CoreLogic, the poor east coast conditions have been due to a high concentration of investment buyers, increase in housing supply and where housing affordability is most stressed.
The regional housing markets of Australia have also returned a diverse performance with regional Tasmania standing out as the only region nationally where dwelling values have seen double-digit growth, up 11.4%.
Top suburbs to watch in the new year!
According to Realestate.com.au, here are six metropolitan and regional suburbs that tick all the boxes for "good future growth for houses including low vacancy rates, future housing supply, owner occupancy data and low days on market.". In no particular order:
- Cranebrook, NSW
- Newcomb, VIC
- Kotara, NSW
- Everton Park, QLD
- St Albans, VIC
- Buddina, QLD
Rates, rates, rates!
After six months of being the champion of competitive pricing, NAB has joined its rivals by increasing their variable home loan rates too. With many uncertainties to the direction of variable rates, some savvy investors are opting to refinance to a fixed rate.
By refinancing your home loan to a fixed rate, you could enjoy the security of knowing that your home loan repayments won't suddenly increase when variable rates do.
Disclaimer: Any information provided in this blog is of a general and informative nature only. While all reasonable care has been taken by Pioneer Credit Connect in compiling this information, Pioneer Credit Connect makes no representations or warranties, whether express or implied, as to the accuracy or suitability of the information contained in this blog.