More positive signs of a rebound in the property market have come with the release of figures from the Australian Bureau of Statistics (ABS) that show housing approvals jumped 20.6% in May.
Figures for units and townhouses leapt nearly 60% (59.4%) to drive this result on the back of a disappointing April that recorded a 6.8% decrease.
The states bouncing back most strongly through building approvals were Sydney (52.9%), Tasmania (41.1%) and Victoria (15%), the ABS said.
These numbers reflect all types of residential housing, excluding detached dwellings.
Approvals for private sector houses remained subdued, rising 0.9% after a 3% fall in April, the ABS said. Victoria delivered the best result with the number of houses receiving approval rising by 7.3% on the previous month.
Meanwhile, the value of new owner-occupier loan commitments rose 4% to $16.4 billion in May. New investor loan commitments rose 6.2% to $8.5 billion.
Compared with pre-pandemic levels in February 2020, the value of new owner-occupier loan commitments was 17% higher in May. The average value of these loans has risen 21.8% over this period.
As an experienced agency in your area, we’ve listed five observations buyers may wish to consider when seeking a new home in the current market.
Buyers rising
Our agents will tell you more buyers are coming onto the market. They’re wagering the medium-term pain of higher interest rates for the longer-term value gain they’ll achieve. More buyers push prices higher.
FOMO
The Fear of Missing Out (FOMO) was an unfortunate behaviour when prices spiked in the aftermath of the pandemic. We’re nowhere near that point now, but you don’t want to delay your plans too long, or you could find yourself in a market of quickly-rising values.
Be quick
When you see something you like or even love, make sure you’re in a position to make your move quickly. You need to have your finances lined up, or you’ll almost certainly lose out to someone who was faster out of the blocks.
Stay cool
Don’t rush your decision, though. Regretting a home can be a painful and expensive experience, especially if you choose to sell because you’re unhappy. Remain level-headed and stick to your budget and predetermined criteria.