August 1: National Home Prices Record Positive Growth
Australia’s property market is doing much better now. New records show that housing prices in the whole country have increased by 1.36% in the last year- from July. This percentage is almost the same as it had gone down last year.
Since the end of 2022, property market prices in Australia have increased. According to the PropTrack Home Price Index, as of August 2023 national average growth was 2.64% the prices during this time also increased by 0.16%.
All the capital cities in Australia except Darwin and Canberra also recorded increased property prices. Adelaide, however, showed the highest price increase of about 0.62%. This shows that Adelaide are currently up 5.27% from where they were a year ago. Brisbane recorded a 0.37% rise, followed by Perth with an increase of 0.36%.
According to PropTrack, this outstanding price growth is due to continued high demand.
Eleanor Creagh, senior economist at PropTrack, outlines that we haven’t yet felt the full impact of the high housing prices. She also states that things might get a bit challenging for the property market in the future.
The residential property market in Australia seems to have a bleak future, considering that the prices will still go up.
High Preliminary Clearance Rates Recorded on Combined Capitals
On August 26, 2023, the combined capitals of the Australian real estate market recorded high preliminary clearance rates. For starters, this rate is defined as the percentage of properties auctioned in Australia after the first round of bidding. At the time, the highest rate was in Sydney, at 78.5%. Second in line was Melbourne, which had a rate of 73.8%. Lastly, Brisbane had 69.6%.
During this time, auctioned homes rose for the second week in the major Australian cities. The following week, 2,056 homes were auctioned. This gives it 6.6% more than the 1,929 houses auctioned. The second week became the busiest for auctions in Australia’s major cities before Easter.
With the news of more auctioned homes, more investors were also interested in purchasing. Among the seven major cities in Australia, the rate of houses sold after the auctions also rose. All the major cities already had 74.0% of homes with people willing to buy them.
This is, in fact, the highest rate in the six weeks. So far, 1,549 results have been counted. The rate is evidently at its highest considering that at such a time like this, in 2022, there were already 1,816 auctions, but only 58.8% of the homes were sold.
These rates suggest that the Australian property market is still going strong despite the most recent increase in property interest rates. However, investors need to note that the preliminary clearance rate will not be the final clearance rate. After calculations, the final clearance rate is achieved, and all submitted bids are accepted.
How to Unlock Smarter Property Decisions
Prices have continued to rise across the board for the property market, however by following a few key tips you can make more informed decisions.
Do your Homework
As an investor, you know how important research is no matter where you decide to invest. It doesn’t matter if the Australian property market has been your investment area for a long time; the first step to making a smart property investment is to do your research first.
The research includes understanding the different types of real estate markets across the country, impacted by the differing economic and planning conditions found in each state.
Don’t be afraid to walk away
This should be your number one rule when investing in the South Australia property market. You need a substantial amount of money to invest in it and if you lose the cash, it can be heartbreaking. If you’re unhappy with a certain property or the terms of a deal, you should not be afraid to walk away. The fact is that there are plenty of other properties in the Aus property market that will suit your needs.
Take to account your lifestyle needs
You may not be investing in the Australia real estate market for business but for your personal or family needs. So, before investing in real estate in Australia, consider your lifestyle needs. Consider the essential housing features you may need and the desirable features of a property. Ask yourself: Is a spacious home important for yourself and your family? Would you go for proximity to public transportation and other social amenities? Once you can answer these questions, you can make a wise investment based on your needs.
Take into account your budget
It is wise to work under a budget when making South Australian property market investments. You should also budget for an investment expert, especially if this is your first investment.
You can ask yourself: How much can I spend on a property such as property market Queensland? How much can I afford for the regular monthly repayments? When answering these questions, ensure you are realistic about your current budget.
Setting a budget allows you to avoid overextending and possibly falling into debt.
Set your goals
As an investor, whether a novice or an experienced, you don’t invest without a goal you want to achieve. Consider setting your goals afresh, especially after your research. The research will give you a better footing at what you can expect, which helps you write and set your goals.
However, you must ask yourself a few questions before setting the goals. The goals can be something like: What are your hopes for achievements you expect after investing? Do you have a long-term or short-term real estate investment goal in the au housing market? If you can answer these, you are better positioned to set realistic goals before investing in South Australia’s housing market.
Seek professional assistance
Before you decide to invest in the Australian real estate market, make sure you get professional advice. If you are unsure where to begin or how to make the best property decisions for your needs, it is best to get professional advice.
Receiving professional advice from a real estate agent or financial advisor at the beginning of your research is a good idea. They will help you narrow down to some of the best properties in Australia. Professionals can assist you in assessing your current financial situation and help you identify the right property. In addition, they can help you negotiate the best price in the real estate market.
Take your time
Being patient is another rule most successful investors will not openly tell newer investors. The rule is to invest and wait. The truth is that the property market can be volatile at times, so be patient when making decisions. Don’t be hasty in any of your investing decisions. Also, do not be afraid to wait for a little longer until the market conditions are favourable for you.
Get Professional Advice
Pezet Matheson partners with you as an investor to give you localized expert advice on any investment you need. Experts are a great deal when investing as a first-timer, especially in the real estate market Tasmania. At Pezet Matheson, we strive to offer you insights that only serve you because we know that one size doesn’t fit all.