There is little doubt the property market is in upswing as we head into spring, with interest rates at record lows and a resurgence of investors returning to the market
According to RE/MAX WA managing director Geoff Baldwin, increased sales and upward price pressure are expected over the next few months.
“Historically, the spring period sees the market improve and there is little doubt this annual cycle will repeat again,” he said.
“However, there are several other influences that are likely to create extra pressure this year.”
He urged those seeking to upgrade or purchase their first home to look at the market prior to this upswing if they wish to avoid paying more.
“Most informed projectionists are in agreement that Australian property prices are as low as they are likely to get and although nobody is predicting boom conditions, people who buy now will almost certainly benefit from significant gains over the next few years,” Mr Baldwin said.
Signs are also looking positive for property owners
With the latest RP Data-Rismark Home Value Index finding dwelling values across Australia’s capital cities have increased over the past five years.
According to RP Data’s head of research, Tim Lawless, the recent recovery trend at the combined capital city level has seen the average homeowner gain just under $30,000 in the value of their home, based on a 6.5 per cent recovery to date.
Borrowers seem to be more comfortable with their mortgages than ever before, with consumer confidence reaching its highest level since the beginning of the global financial crisis.
According to Genworth’s Homebuyer Confidence Index, sentiment jumped from a record low of 93.4 in March 2013 to 100.1 at the end of July 2013.
According to Bridget Sakr, Genworth’s chief commercial officer, “It appears consumers are becoming more confident about making repayments, with the index showing that 29 per cent of homeowners expected interest rates to decrease over the next 12 months – compared to 12 per cent who held this expectation in March.
“The spike in consumer confidence recorded since March was also driven by a 37 per cent decrease in the proportion of surveyed borrowers who expected to experience mortgage stress over the next 12 months.
“The latest Genworth Homebuyer Confidence Index suggests homeowners realise that current market conditions – particularly historically low interest rates – makes buying real estate and servicing a mortgage a more attractive proposition than it has been for a number of years,” Ms Sakr said.
So whether you are looking to refinance an existing loan, make the leap into property investment or just consider your options, now is the perfect time to get a mortgage health check to ensure you are on the right track.