As property prices start to climb, listings are following suit. So if you’re hunting for a home, what does this mean for you?
If you’ve been looking at the property market over the last six to 12 months, you probably already know that while property prices have dropped, it’s been a case of slim pickings due to the drastically low number of listings. But prices look like they are starting to bounce back, with March heralding a 0.6% increase in national property prices, according to CoreLogic. And listings are following suit. PropTrack data for March showed new listings on realestate.com had risen by 10.5% month-on-month, making it the busiest month for new listings since May 2022.
So why has the market changed? And what does it mean if you’re looking to buy?
Property prices and increased demand
When the RBA announced its rate rise pause in April, we all let out a collective sigh of relief. And many financial and property analysts, including CoreLogic, estimated the pause may give rise to increased prices due to a boost in buyer confidence. But there are other compounding factors that were influencing the pricing upswing before the rate rise pause.
Record low listings, a competitive and expensive rental market, and elevated migration placed increased demand on limited housing supply. And prices started to climb despite consecutive rate rises. Rising prices, combined with the Autumn selling season, have seen vendor confidence pick up and property listings increase.
But how does this affect you if you’re looking to buy?
Opportunity may be knocking
If you’ve been ready to buy but haven’t been able to find the right place due to low supply, now may be the time to purchase – before FOMO starts to kick into the market. More listings mean you’ll have a greater chance to find a suitable abode, rather than sifting through the dregs. But before you pounce on that perfect property, it helps to have your finance sorted. Finding out your borrowing capacity and loan options are important steps when planning to buy.
Dnister’s Chief Financial Officer, Paul Coulson says, “Whilst the RBA’s pause bolstered our spirits, it’s wise to be mindful that there still remains a risk of cash rate rises. Getting advice on the right type of loan, assessing your borrowing power, and organising your finances could make things smoother”.
So if you’re keen to purchase in 2023, give us a call and we’ll get cracking on finding you a mortgage solution with Dnister’s loan options that will suit your individual needs.
Worried about your mortgage?
Despite today’s reprieve, there’s no denying that a lot of households around the country are feeling the pain after 10 successive rate rises.
There are also lots of people on fixed-rate home loans wondering what options will be available to them once their fixed-rate period ends. “We have a range of lending products designed to cater to Members needs. Some options include refinancing which could involve increasing the length of your loan and decreasing monthly repayments, debt consolidation, or building up a bit of a buffer in an offset account ahead of more rate hikes” said Dnister’s Lending and Member Services Executive, Ivanka Bernyk.
So if you’re concerned about how you might meet your repayments going forward, give Dnister a call today. The earlier we sit down with you and help you make a plan, the better we can help you manage any further rate hikes.
Get in touch
Call Dnister today on 1800 353 041 and arrange to speak with a Lending Specialist or book an appointment online.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. In providing you with this information you should consider the appropriateness of this advice with regard to your particular financial situation and needs. We advise that you carefully read our Home Loan Key Facts Sheet and TMD before acquiring a loan product. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent. Applications are subject to Dnister credit assessment criteria. Interest rates are subject to change without notice and should be verified with your local branch. Terms and conditions, including fees and charges, apply. For full details on our products and an analysis of your personal requirements, please arrange for an appointment with one of our friendly lending staff by contacting your local Dnister branch
