Doomsday predictors are never short on work- after all, rumour mills work overtime. However, those who have predicted a crisis will only agree that the real estate market is going strong, quite strong. People are still borrowing amounts pretty close to what they borrowed in peak years to fetch properties in Australia. Annual borrowing for residential mortgage shows a steady picture. Michael Matusik from Property Update rightly points out that all three types; the first home buyers, second + buyers and investors are showing strong signals.
For first home buyers;
- Nearly 100000 of them bought their homes last year.
- Average mortgage for first home buyers is only about $12000 short of overall mortgage borrowings.
- First home buyers called a debt of $28 billion upon themselves. This is roughly 1/7th of the total borrowing.
For second+ buyers, the borrowing figure is $88 billion, about $4 billion in excess of Investors and three times the figure for first home buyers. Trading volume is only 5% lesser than what it was during the peak time.
Investors have worked up a debt of $84 billion, holding roughly 42% market share in the year 2012.
The investor market is bound to gather further momentum, while the first home buyers’ market will play second fiddle and in all earnest, there won’t be a property bust any time soon. You can read the original article here.
Home values for dwellings (attached and semi-attached homes) reported a leap of 2.8% over the March quarter. Michael Yardney for Property Update suggests how each area has done well, with Perth showing highest growth and every capital city, except Adelaide, contributing to the total sum. Middle-priced housing sector is exhibiting maximum response, posting a hike of 1.6% in value of home dwellings. Contrarily, the lowest-priced and the highest-priced end of the spectrum have displayed a fall of 0.9% and 0.6% respectively.
The Australian property market is currently in a very stable phase. While there is no recession or bust phase in sight, it will be fruitful to learn the right ways of making profits in today’s market. Pete Wargent for Property Update suggests how it may not be the best idea to buy property in your own backyard.
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