Australia’s real estate market continues to recover with a steady climb in the number of properties coming onto the market and being sold within 30 days.
Industry researcher CoreLogic also reports fewer properties are now being discounted to secure a buyer.
Where discounts were offered, the median value was down 3.8% in the three months to September, an improvement on the 4.3% price cut at the end of last year.
In good news for buyers, new listings are trending higher than a year ago in five capital city markets. There are also more homes in total for sale in Melbourne, Hobart and Canberra than a year ago.
Some 38,428 new listings were recorded in the four weeks to October 8, which was another positive trend and just 3% lower than the five-year average.
CoreLogic’s Home Value Index showed national values jumped 2.2% in the three months to September, marginally retreating from the 2.4% achieved in the 12 weeks to August. The research company says residential property is now a national asset class worth $10.1 million.
The market recorded 39,216 sales in September, approaching the five-year sales average of 40,607.
Auction rates have stayed below 70% with CoreLogic noting that the combined capital city clearance rate was 65.2% in the four weeks ending October 8, down from 66.1% four weeks earlier.
These buyer tips may help if you are considering entering the market now.
Market watch
When the market is on the move, diligent research is essential. Focus on a prospective price range for your existing home and the values for the suburbs and properties you’re targeting.
Money talks
Gain a pre-approved mortgage before you begin your search. You’ll know how much you can afford and be able to act quickly when you find a gem. Be aware a pre-approved loan is not formal approval. That comes once you’ve made an offer and the lender has valued the property.
Time-poor
If you’re struggling to find the time to make an informed purchase because of other commitments, hiring a buyer’s agent is worthy of consideration in a competitive market. They’ll locate suitable properties and negotiate with a seller.
Balancing act
The biggest challenge is selling and buying simultaneously so you can move from one property to another without having to find temporary accommodation. There are a couple of challenges. Firstly, finding a rental is difficult these days. Secondly, if you exit the market too long, prices may spiral beyond your reach for your target properties. So it’s best to nail that balancing act.
NOTE: The information in this article is general in nature and provided as a market overview only. Always consult your financial advisor or accountant for advice specific to your personal circumstances.