The news surrounding the property market is becoming increasingly positive — and there’s yet more good news coming out of CoreLogic’s August Hedonic Home Value Index.
According to the report, the Reserve Bank of Australia’s rate cuts and the easing of credit standards will result in Australia’s housing market continuing its recovery over the next two years.
“Our long-held baseline forecast — that the trough in the national housing market has occurred — is evident in improving activity in the Sydney and Melbourne markets, where 60 per cent of activity takes place,” said Moody’s Analytics economist Katrina Ell.
“Improved auction clearance rates in these cities, alongside the return of monthly dwelling value growth, according to CoreLogic data, support the outlook for ongoing improvement.”
Sydney and Melbourne are expected to see growth of over seven per cent in the next year and the year after, with Brisbane, Adelaide and the ACT also set for positive growth.
Consumer confidence has also returned to the market according to consumer comparison website finder.com.au. The platform has been tracking property sentiment for the past six months and has found the proportion of Australians who think now is the time to buy has lifted since May.
“More and more Aussies are feeling confident about the property market, we’ve found,” money expert Bessie Hassan told news.com.au.
“When we ask whether now is a good time to buy, 59 per cent currently believe that it is, which is up from 54 per cent in May. And 52 per cent think property in their area will increase somewhat or significantly in the next 12 months.
“In Sydney, 53 per cent of those surveyed expected prices to rise in the next year, while 61 per cent in Melbourne also believed values would rise.”
This time last year, Saturday auctions in most capital cities were ghost towns, where you’d have struggled to find many bidders.
Since then, Ramon Mitchell, director of Gault & Co Property Advisory believes competition had strengthened among buyers, with bigger offers made and sales completed faster.
“There’s been increased traffic through open house inspections and there seems to have been much higher conversion of these to registered bidders on auction days,” Mr Mitchell said.
“You can see how this has played out in consistent improvement in auction clearance rates — including sales prior to auction.
“There’s no doubt this is having an effect on value. They’re increasing across most of the markets we monitor, particularly in the capital cities.”
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