The property market may have experienced some ups and downs over recent months, but nevertheless, it still appears to be working in the favour of first-time buyers.
As the final quarter of the year gets underway, which areas of the market are benefiting purchasers, and how long are they likely to continue?
Access to home loans is improving
Measures were brought into force late last year to make it more difficult for investors to enter the property market. In theory, this meant other buyers should have a better chance of being able to
make those all-important first steps onto the property ladder.
The latest figures from the Australian Bureau of Statistics (ABS) suggest this is working, as lending to owner-occupiers improved between July and August this year. A 2.9 per cent month-on-month increase was registered, which is good news if you’ve yet to speak to a mortgage broker.
The cash rate is still low
Borrowers have been enjoying a period of interest rate stability since May, and, at its 3 November meeting, the Reserve Bank of Australia (RBA) decided this would continue for a while longer.
A low cash rate generally means lenders will follow suit, reducing the cost of home loans for first-time buyers. RBA governor Glenn Stevens pointed out this was already happening, as “low interest rates are acting to support borrowing and spending”.
Of course, there’s no guarantee that the cash rate will be low for much longer. Playing the waiting game with your home loan application could pay off, or it might be wise to think about making your move sooner rather than later.
Sales listings are rising
Having a wide choice of real estate in Australia to choose from also works in your favour as a buyer, which is why the latest SQM Research figures are likely to come as positive reading. Between August and September, the number of homes listed for sale increased 1.4 per
cent on a national basis.
With homes for sale becoming more readily available, now could be the ideal time to think about getting onto the property ladder and making the most of these favorable conditions while they’re
still around.
Give us a call on 02 9289 8989 and we will be happy to advise.
THIS IS ONE ARTICLE WE HOPE YOU NEVER HAVE TO READ. BUT IF COVID-19 HAS IMPACTED YOUR INCOME TO THE POINT WHERE YOU MAY NEED TO PAUSE YOUR MORTGAGE REPAYMENTS, THEN WE’VE BROKEN DOWN THE BANKS’ DEFERRAL POLICIES FOR YOU. Late last week the Australian Banking Association (ABA) announced that small businesses … Read more
THE RESERVE BANK OF AUSTRALIA (RBA) HAS CUT THE CASH RATE TO A RECORD LOW OF 0.25% FOLLOWING AN EMERGENCY MEETING DUE TO THE IMPACT THE CORONAVIRUS IS HAVING ON THE ECONOMY. RBA Governor Philip Lowe said in a statement the move was due to the virus causing “major disruptions … Read more