Did you know that Westpac’s ‘time to buy a dwelling’ index increased by another 3% in August and is now 17% higher than it was a year ago?* This index, which measures consumer sentiment towards buying property, is currently at its highest level in five years.
August has seen increasing auction clearance rates in Sydney and Melbourne as well as a marked improvement in dwelling values. Sydney property prices were up by 1.6% and Melbourne’s rose by 1.4%. Canberra, Hobart and Brisbane also experienced monthly price gains of 0.8%, 0.5% and 0.2% respectively.+ While many regional markets are still lagging, the results from our two biggest cities were much stronger than expected and may bring a sigh of relief from homeowners.
CoreLogic’s head of research, Tim Lawless, cautioned that if house prices do start to climb from here, we might see renewed tightening in mortgage lending policy from the Australian Prudential Regulation Authority (APRA). Additionally, Lawless warns that the expected increase in housing stock over the spring months may exceed buyer demand. This, combined with the existing tough credit conditions for borrowers, may keep a lid on any significant price increases in the short term.
If you are in the market to purchase, please give me a call to chat about your borrowing capacity before any further lending restrictions occur.
SOURCES: *https://www.westpac.com.au/, https://www.abc.net.au
Stuart’s ultimate aim is to develop successful, ongoing client relationships and help people to achieve their financial goals. He knows how to structure lending in the best way to maximise the taxation benefits for clients and help them build strong property portfolios.
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