Australian property insights: officially a great time to buy
New property data suggests it could be an ideal time for first home buyers and first-time investors to enter the property market.
The ANZ-CoreLogic Housing Affordability report (released June 2019), shows housing is the most affordable for buyers since 2016.
The analysis of property, economic and demographic data for the last two years has flagged housing affordability improving faster than it had declined over the past 10 years.
Over the decade to December 2018, median dwelling values in Melbourne rose by 67.9% (compared to a 37.5% increase in household incomes). A softening market with some price drops has opened doors for patient buyers.
CoreLogic’s Head of Research for Australia, Cameron Kusher, said this window of improved affordability may be the ideal time for maiden buyers to act.
“We predict that price falls will settle later this year, followed by modest price growth starting from 2020,” he said.
The report also found that average time taken to save a deposit is down on previous years - 8.9 years for the typical household to save a 20% deposit, down from 9.1 years the previous quarter, and 9.3 years in 2018.
Time to strike in Victoria
The affordability window may not last, with CoreLogic’s Hedonic Home Value Index for June 2019 showing house and unit values rising in Melbourne for the first time since November 2017 (to a $619,383 median).
Price declines have slowed in recent months and June marks their first return to a positive direction. Spurred by RBA rate cuts and a relaxation of lending criteria by the Australian Prudential Regulation Authority (APRA), further downturns are unlikely through 2020, and prices are expected to continue their climb.
First home buyers keen to lock down their dream home or investment before affordability stretches further can take advantage of these conditions and market movements – it’s officially a great time to buy.