PROPERTY NEWS - WHERE ARE WE AT?
We all heard about the price increase in property last year which rose a whopping 24.5 per cent in Sydney with the median house price now $1.375million. However things have begun to slow. We wont see the frenzy of last year but be assured that property will still have growth, be it on a slower scale. NAB and ANZ have forecasted that the rise in house prices could be around 5 or 6 per cent in 2022. That's still a good amount of growth.
Interest rates are also set to lift by the end of the year. However, if inflation rises significantly, there will be pressure to increase rates a lot sooner. The RBA stated they will not increase the cash rate until actual inflation is sustainable within the 2 to 3 percent range. I'm sure you have all noticed though, some banks have already started lifting some of their interest rates. It's important to shop around for better rates.
If you are looking at selling this year, prices are firm especially while interest rates remain low. It seems units are becoming popular as the price gap between houses and apartments are significantly large. Affordability for a lot of people may bring them to buy an apartment rather than a house or townhouse. If this is the case we may see more of a price growth in apartments.
First home buyers - Its important to keep to your budget and not be tempted to go over it. Interest rates will rise and you will need to have a bit of a buffer with your money. Know what you want from your property and remember that Rome wasn't built in a day. Stepping stones can keep you out of financial trouble and having that five year plan to focus on is extremely important. Talking to your mortgage broker and real estate agent will bring you peace of mind with your future purchase. They are the experts.
If you are thinking of selling your property, it is a great time to get ready and give us a call to get you on your way. If you are looking at buying then I wouldn't be holding my breath anytime soon for property to fall. Get your foot into the market as soon as you can.
Property has always been a great investment and it's every Australian's dream to have their own place to call home.