Reserve Bank of Australia raises interest rates due to inflation and tightening the labor market. It is becoming more difficult to buy a home. The housing market is slowing down because people have lost confidence in the economy, and they can’t afford homes.
Housing values in Sydney and Melbourne are declining a bit. Brisbane, Adelaide, and Perth are experiencing a slow increase in property values. Many people are now worried about a possible housing crash.
Despite all the problems, there are many positives to our housing market.
- In recent weeks, the number of new listings has steadily increased in Sydney and Melbourne, reducing the pressure on the housing market.
- Most analysts predict that the value of your home will increase when the economy starts to recover, which is expected to occur by 2024.
- CoreLogic’s latest leading indicators show no signs of panic in the sale of homes.
- Even though the monthly sales volume may be decreasing, it is still higher than the average of the past ten years.
Great Opportunities For Investors
Experts believe that increasing rental yields make the property more appealing to investors. Rent markets that are tight and products that are improving will keep the demand for investment property strong. The buying conditions have improved, and now is a better time for investors.
- Rents are increasing faster than house prices.
- Tenants are looking for affordable homes, so the demand for medium-to-high-density housing is increasing.
Rents are rising in all capital cities as well as the rest of the state. The rental market is extremely tight. Vacancy rates are around 1% in many parts of Australia. Investors would have a great opportunity to enter the rental market.
Learn more about property investment.
It is important to do your research before investing in property. Our website has many pages that will help you better understand property investment.
- Interest only vs. Principal and Interest: Which mortgage strategy is better?
- Depreciation of an investment property
- How to inherit a property
- Documents for investment property tax
- Joint ownership in an investment property
- Investment Loans Offset Accounts
- Variation in the PAYG Income Tax Withholding
- Turning your house into an investment
- What is capital gain tax?
Renting and buying property will eventually become more affordable
Renting smaller homes will reverse as people share rental costs to maximize their savings. It is not yet known if this will lead to a decrease in interest rates on housing.
As housing values continue to fall, the affordability of housing will also improve in the near future. First-time buyers may be more motivated to buy a home as the market is shifting in favor of buyers.
Why should I invest in property now?
Agents and vendors need to be realistic in the short term about market conditions. Agents and vendors must be real about the market conditions in a short time. Investors, property buyers, and developers must be aware of their options to act before the market changes.