Confidence continues to return to the property market despite the continued pressure on mortgage costs, according to the latest figures from the Australian Bureau of Statistics.
It looked at the number of new loans that are being issued and found an uptick of 4.9% for March compared with the previous month.
That represents a value in new housing loans of $24 billion – a finding that marries nicely with property price data from Core Logic that shows values are starting to strengthen again.
This latest measure of new loan commitments represents the first monthly rise since January 2022.
Loans relating to owner-occupier housing rose 5.5% to $16 billion. Refinancing between lenders rose 3.9%to another record high of $14.2 billion in March as borrowers continued to switch lenders for lower interest rates to ease the pain of rate rises.
Investor lending was up 3.7% to $8 billion compared with the previous month. First-home buyer loan commitments rose 15.8% on the previous month, a result influenced by a largely negative result in February.
With confidence returning to the market you may wish to consider moving up the property ladder.
These tips may be helpful when deciding when you should make a move:
Size up your needs
Focus on why and how much additional space you need. Factors such as the number of bedrooms, bathrooms, living areas, storage space, and outdoor areas are all part of the equation.
Think long-term
Consider your long-term plans and goals. Will the bigger property accommodate your needs and aspirations over the next few years? You don’t want to go to the expense of upgrading again in three years.
Money question
Establish a budget for the upgrade and ensure you know your spending limit. Don’t forget to add in potential additional costs, like repairs, renovations, and tax and legal expenses.
Ideal location
Sometimes, you must move to a new area to afford a larger home. So, you need to evaluate potential suburbs that will suit your lifestyle. Proximity to schools, workplaces, amenities and transport are important factors. The potential value growth of the property over a five to 10-year period is another fundamental consideration.
Maintenance
A larger property often requires more time, effort, and resources to ensure its upkeep. Ask yourself whether you want to be responsible for additional cleaning and gardening or whether you have the budget to hire help.