We like where this market is right now, and where it is heading. When you crunch the numbers, other economic indicators, especially income and employment, are rising faster than property prices and interest rates.
Rockingham, Western Australia (PRWEB) August 30, 2012
Statistics recently compiled by RP Data suggest that many locations across Australia have become “buyer’s markets”. A buyer’s market occurs when conditions favour those who are buying houses over those who are selling them. Some of the metrics considered when assessing the housing market are inventory levels, interest rates, auction clearance rates, and property values.
According to Tim Lawless, National Research Director for RP Data, over 300,000 properties are currently listed for sale across Australia, and this has created buyer’s markets in many areas. Lawless used the housing index to assess which markets constitute seller’s markets, which markets constitute buyer’s markets, and which were balanced, or in the middle.
The entire states of Queensland and Tasmania were assessed as buyer’s markets, calling Hobart the “most extreme,” while parts of Darwin, Canberra, and Melbourne were rated as balanced. In Western Australia, Perth was named a seller’s market, as was Pilbara.
Overall, Lawless interprets the index as that of a buyer’s market. Referencing the supply, Lawless said, “Stock levels remain high across each of the capital cities, so prospective buyers have a good range of housing options to choose from.”
Justin Smith, Principal of The Mortgage Gallery Rockingham, gave his thoughts on the data: “We like where this market is right now, and where it is heading. When you crunch the numbers, other economic indicators, especially income and employment, are rising faster than property prices and interest rates. Consequently, even in markets that aren’t seen as buyer’s markets, the conditions favour the buyer.”
Smith would further explain, “There are a lot of houses for sale right now, at very reasonable prices. The market is beginning to pick up a little bit, but we aren’t seeing housing prices go up very much. Eventually, prices will start to rise again, but for the time being, there are a lot of bargains out there.”
Smith would continue, “Real estate has traditionally been a very good investment. The market might have risen too fast at the beginning of the 2000’s, and fallen prey to the global financial crisis in 2008, but we think prices fell as low as they will ever be during the crisis, and we don’t see them falling that low again.”
Smith stopped short of predicting a boom, though: “Nobody can predict how high prices will eventually rise. What we can deduce with relative certainty is that prices will at least continue to rise slowly, tuning real estate back into a very reliable investment.”
The Mortgage Gallery Rockingham is a leading mortgage broking firm which serves Rockingham, Kwinana, Cockburn, and the surrounding areas. They are experts at matching customers with banks and lending institutions that are appropriate for their needs. For a consultation, please call The Mortgage Gallery Rockingham at (08) 9527 1800 or check out their website here: http://www.themortgagegalleryrockingham.com.au/.