Consumer confidence in the housing market has improved according to the RBA on the back of keeping the cash rate at 3% this month, inflation at just 2.2%, low unemployment and stabilisation of the US and European economies. The RBA in this month’s decision advised that “dwelling investment appears to be slowly increasing, with higher dwelling prices and rental yields” adding to investor confidence in the housing market. John McGrath, CEO of McGrath Real Estate, is forecasting 5%-10% growth in all major east coast markets. He commented that people he has talked to think the market has found its bottom!
Dr Andrew Wilson, Senior Economist for Australian Property Monitors (APM) has also commented “the Australian housing market bottomed out in the December quarter 2011 with prices falling by 3.6 percent over that year. House prices stabilised and rose over 2012 with the national house price up by 2.1 percent.” APM also released Sydney’s auction clearance rate of 72.7% for the week ending 11th March 2013. This is higher than the same weekend last year with only 56.6%.
So if you are looking to buy property, perhaps waiting for it to bottom out may see you miss out. If the price is reasonable, jump in. If you are looking for a mortgage loan, The Home Loan Company can help you. We have the right Education, Ethics and Experience to help you choose.
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