Property prices set to slow?
FHBA Market Update: 18/April/2017
As you often read in our weekly FHBA Market Updates, Australia’s two capital cities are currently witnessing large property price growth and they have been for a few years now.
While no one can always accurately predict what will occur to property prices, two leading Australian property forecasters have predicted that house prices will stagnate over the next three years in both Melbourne and Sydney, along with most of Australia’s other capital cities. Aspiring first home buyers across Australia will be hoping they are correct!
In today’s FHBA Market Update we take a look at the latest property price movements; new property price predictions from two Australian property forecaster companies; where the future of housing may be heading; why some young Australians are leaving Sydney for other east coast cities and why super access for your first home is probably not the best idea the government has to solve housing affordability.
News affecting first home buyers
Mixed news this week for first home buyers with everyone now waiting to see what the government will do in relation to housing affordability, in the upcoming May budget (or if they will do nothing at all):
- Super is for retirement, not your first home – With growing speculation that the Coalition government is seriously considering allowing first home buyers to somehow access / utilise their super saving towards their first home we at FHBA have voiced our concerns about the potential plans, stating that there is a better alternative – see why we don’t like super being used to help first home buyers fund their deposit & what we think should be done instead on our Facebook page
- Smaller housing is a ‘must’ – According to Chris Johnson from Urban Taskforce Australia’s biggest capital cities should consider a new style of living: owning small accommodation while sharing other amenities such as common areas – learn why Mr Johnson makes this suggestion in the Sydney Morning Herald
- House prices to slow – According to two leading Australian property forecasters, CoreLogic & Moody’s, house prices will ‘stagnate’ between 2018 and 2020 in most of Australia’s capital cities including the currently hot markets of Melbourne & Sydney – see the reasons why property prices are expected to slow in 9 News
- Moving interstate – New data from the Australian Bureau of Statistics (ABS) show’s what while international migration might be arriving in NSW (specifically Sydney), more NSW residents are leaving for other states than people are moving to NSW from other parts of Australia – FHBA co-founder Taj Singh spoke to Domain about this trend
Capital City Price Movements
The CoreLogic Daily Home Value Index (as at 18/04/2017):
- Adelaide – 484.92 (Qtr + 2.8% / Yr + 2.4%)
- Brisbane – 554.63 (Qtr + 1.6% / Yr + 4.9%)
- Melbourne – 909.68 (Qtr + 4.4% / Yr + 16.9%)
- Perth – 568.74 (Qtr – 0.8% / Yr – 5.1%)
- Sydney – 1112.08 (Qtr + 5.7% / Yr + 17%)
Preliminary Weekend Auction Clearance Rates (15th – 16th of April, 2017)
*Please note auction results are still coming in from the Easter weekend and this will influence clearance rates
Interest Rates Update – 18/04/2017
While some of the standard interest rates banks offer home loan customers have been rising over the last few weeks, many banks are offering special rates for a short time. To see if you are eligible for any of the hot home loan specials on offer at the moment be sure to book in a complimentary, no obligation consultation with an FHBA Broker.
- Compare a range of savings account rates
- Compare a range of home loan rates
- Speak to a home loan expert
New Homes of the Week (ed. 50)
Over the last week we have been busy making enhancements to our FHBA New Homes Property Portal. The property portal, dedicated to first home buyer suitable homes, is popular amongst first home buyers searching for FHOG eligible affordable properties.
Tweet of the Week
Bring back the First Home Savers Account! https://t.co/VsHsC6xMXf #afrbanking17 #FHBA #ausproperty @FinancialReview @ScottMorrisonMP
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First Home Buyers Australia