Housing Market Performance: July 2017 Update

BANKSTOWN, Australia - Aug. 9, 2017 - PRLog -- 2017 is already half way through. Do you wonder how the property markets are currently performing?

Earlier this year, home buyers and investors were raging to buy real estate but to improve housing affordability and financial stability, APRA and the RBA wanted to slow down the booming markets in Sydney and Melbourne. Investing became harder for both foreign and local investors because of the tighter lending criteria and out of cycle interest rate increase. Owner occupiers may find it difficult to refinance as well.

Because of the slowing market, reports now show minimal price growth around Australia in the second quarter of the year.

Values slightly increased in Sydney, Melbourne, Brisbane and Perth in the last three months. Sydney house prices rose by 13% while apartments increased in value by 8.6%. Melbourne, on the other hand, had a price growth of 15% for houses and 1.5% for apartments.

While rental rates have dropped in Brisbane, Perth and Darwin, rental growth has increased in all other capital cities in the last year, delivering an overall capital city rents increase of 1.6%.

The market remains strong, as shown by auction clearance rates, and it may be early to call the peak of the cycle yet. Discounting levels at 5.4% are lowest since March 2014 in Sydney, Melbourne, Brisbane, Adelaide, Canberra and Hobart. The typical capital city house takes 40 days to sell, which is a bit higher than in recent months.

The number of new properties advertised for sale nationally is also higher than last year except for Perth, Darwin and Adelaide.

Property values have increased 12.2% in the last year and while price growth will likely be moderate this year, the lower end of the market may benefit from the new First Home Owner incentives. The Melbourne property market was the top performer last year while Brisbane's property market only increased 2% but with areas still being good investment prospects where young families can live inexpensively. There is also a huge oversupply of new high rise apartments.

PS.

Demand from property investors may be slowing down because of increasing interest rates, credit squeeze and home affordability. We might be coming to the mature stage of the cycle. Investors are advised to be careful in selecting properties as not all will grow in value and some can even make for a poor investment choice over time.

For more information about property investment in Australia, contact a Specialist (http://www.chan-naylor.com.au/contact-us/?utm_source=dire...) to discuss your particular circumstances.

If you like what you are reading, subscribe to our newsletters now at www.chan-naylor.com.au

Disclaimer (http://www.chan-naylor.com.au/about-us/disclaimer/)

Photo: Flickr

Source (https://propertyupdate.com.au/state-by-state-housing-market-economic-update-chart-pack-june-2017/?inf_contact_key=980c974e66097b33e9d3f0d309ef9eefae6e892e10d65ec80e2a2a52c78d2dde%20)