For the first time in over five months, the Australian property market has recorded a 0.4 per cent price growth with all capital cities experiencing a value increase except Melbourne.
According to the latest CoreLogic home value index presented in October, we can now expect the housing market to begin to soar again following the easing of some boarder restrictions.
Big growth for small cities
According to the index, the smaller cities were the big winners with 1.2 per cent in Darwin and Adelaide, 1 per cent in Hobart and Canberra, 0.6 per cent in Perth and 0.5 per cent in Brisbane.
Sydney also saw an increase in the market by 0.1, which, even though slight, is considered a step in the right direction for sellers as the value has been falling consistently for properties in the area since April.
Melbourne, a city who has had a tough year in relation to lockdown and Covid-19 restrictions, expectedly falls behind the rest of the market pack with prices continue to fall with 0.2 per cent over the month of October.
Rise in distressed listings
At the same time Australia has been deemed technically out of a recession, a so-called fiscal cliff has emerged. However, experts are saying the visible impact on housing conditions won’t really surface until next year.
“We are only just seeing the wind-down of JobKeeper now, and even though mortgage deferrals are starting to expire, we won’t start to see mortgagee-in-possessions rising probably until after the first quarter of next year,” said CoreLogic’s head of research, Tim Lawless.
“We aren’t expecting foreclosures to become a significant part of the market, because it does look like the vast majority of expired deferrals are moving back into some kind of repayment schedules but there are still some headwinds ahead for the housing market, in the sense that we should expect some weakness around labour markets as JobKeeper winds back and we will see a rise in distressed listings come onto the market.”
Heavy demand on the market
According to the expert, record low interest rates in combination with some measures announced in the federal budget is causing the housing market to struggle to keep up with buyer demand.
As demand increases for properties in most of the smaller and larger cities, you’ll need to act fast when purchasing a property. It’s more important than ever to be fully informed about the property you’re looking to purchase.
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