Perth, WA – Results from the January RP Data – Nine Rewards Survey saw a significant majority of participants responding that now is a good time to buy a home. The results are encouraging as they point to growing confidence amongst consumers in the property market.
This is also supported by a recent analysis from Fitch Ratings that the national house price across Australia saw an overall increase of 9.8% last year. Increased borrowing capacity in addition to an undersupply of housing and record low interest rates are credited for contributing to this growth.
The analysis by Fitch Ratings expects the housing market to continue to steadily increase in 2014. These factors in addition to signs of a growing economy have led to strong predictions about the property market as seen by the latest results from the RP Data survey.
RP Data national research director Tim Lawless said, “Clearly, Australians remain positive about the direction of dwelling values, however most respondents who think values will rise over the coming six and twelve months have fairly measured expectations of value growth with most suggesting values are likely to rise by less than 5% over the coming year.”
This is good news and suggests growing consumer confidence for the property market. But what about the vulnerability in dwelling values? Predicting future housing values is practically impossible given that the market can be volatile.
Nearly 60% of respondents in the same survey have indicated a concern in the sustainability of dwelling values. This is not surprising given the impact the global economy had on the property market just a few years ago. But data also shows that property transactions are continuing to rise despite these concerns.
The housing market bubble will continue to be an ongoing debate particularly in markets such as Sydney and Melbourne where values tend to be higher. Which raises the question on whether now is a good time to purchase property. Interest rates are currently at record lows but are likely to see an increase in the near future.
Those looking to buy or build their first property are in a strong position to lock in a low interest rate. And housing at their most affordable level represents an excellent opportunity for those to consider buying their first home.
But those new to the market also need to do a fair amount of research especially when building a new home. This process is much more intensive than simply buying an established property. This is why consulting with an experienced home builder is strongly encouraged to avoid any confusion and to establish expectations ahead of time before continuing with the project.
It also allows future homeowners to assess their financial situation and how a mortgage fits in with their budget. With growing confidence in the property market and interest rates at all time lows, there is perhaps no better time to buy or build a new home.
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