Are We Witnessing a Resurgence in the Property Market?
Navigating the Australian property market over the last year has felt like standing on shifting sands, but is the market starting to regain stability? And if so, what can you do now to make sure you are ready to buy?
Anyone with an eye on the property and finance market over the past few years has seen their fair share of thrills and spills. It has been anything but eventful. But with the RBA’s rapid-fire hikes slated to peak in 2023, is there a property upswing afoot?
Westpac’s economists seem to think so as they are predicting that the housing correction is winding down. The bank forecasts that Australian property prices will grow by 5% in 2024 after stabilising throughout 2023.
The Big Four Banks’ Cash Rate Predictions
There are Other Benefits Too
The RBA raised the cash rate to 3.85% in May 2023. Understandably this has made some would-be buyers gun-shy when it comes to pulling the trigger on applying for a home loan and buying a house. But Australia’s four major banks have topped that 2023/2024 could see the cash rate start to decline.
Here is what they are predicting:
- CBA: peak of 3.85% reached and will drop to 2.60% by August 2024.
- Westpac: peak of 3.85% reached and will drop to 2.10% by May 2025.
- NAB: peak of 3.85% reached and will drop again in 2024.
- ANZ: peak of 4.10% by August 2023 and then will drop to 3.85% by November 2024.
So whichever financial institution you choose to listen to, it looks like we have either reached the cash rate peak or are very close to it. And what goes up must (hopefully) come down.
Property Prices Are Back on the Move
In 2022 we saw national property prices take a small, but not insignificant, hit. In response, sellers started waiting it out for a better price, creating a slim-picking situation for house hunters.
However, Property Investment Professionals of Australia (PIPA) chair Nicola McDougall has stated that property prices look to be stabilising, partly due to the low volume of housing stock for sale.
Meanwhile, CoreLogic data shows that the three months to April marked the first quarterly boost to national property values since this time last year, with a 1% rise.
Why is this good news if you are looking to buy? Well, hopefully you’ll soon have more suitable housing options to choose from as owners start to list again. And with interest rates predicted to decline in 2023/2024, getting prepared now could put you in good stead to buy when the time is right.
Frequently Asked Questions
What does the RBA's cash rate mean for homebuyers?
The RBA's cash rate influences the interest rates offered by banks. A higher cash rate generally means higher interest rates for home loans, while a lower rate could lead to cheaper loans.
How reliable are the cash rate predictions from the Big Four Banks?
While the predictions from Australia's Big Four Banks are based on extensive research and market analysis, they are still subject to change due to various economic factors. Always consult multiple sources and consider your personal financial situation.
What impact do property prices have on homebuyers?
Rising property prices can make it more challenging for new buyers to enter the market but can benefit those who already own property. Conversely, falling prices can present buying opportunities but may negatively impact current homeowners.
How can first-home buyers benefit from government schemes?
Government schemes like low deposit and no lenders mortgage insurance programs can help first-home buyers enter the market sooner by reducing upfront costs.
What should I do to prepare for a property purchase?
Preparing for a property purchase involves multiple steps, including saving for a deposit, getting pre-approved for a loan, and researching the property market. Consulting a mortgage broker can provide personalized advice tailored to your needs.
Is now a good time to buy property in Australia?
The "right time" to buy property varies depending on individual circumstances and market conditions. With interest rates predicted to decline in the coming years and property prices stabilizing, now could be a favorable time for some buyers. Read more about this article here: https://zippyfinancial.com.au/best-time-to-buy-property-in-australia/
How can Zippy Financial assist me in navigating the property market?
Zippy Financial offers expert mortgage brokerage services, helping you find the best loan options, get pre-approved, and navigate the complexities of the property market.
Give Us a Call Today
With all the above in mind, getting your pre-approved finance in place now could have you primed to pounce on your ideal home ahead of the next property market upswing.
If you don’t think your deposit is quite there yet, keep in mind that a new round of federal government’s low deposit, no lenders mortgage insurance schemes are set to become available from the 1st of July, which can help first-home buyers, regional buyers and single parents crack the market 5 years sooner (on average).
If you would like to find out more, get in touch today and we can run you through your options and help arrange your finances.
Phone: 1300 855 022
Email: clientservices@zippyfinancial.com.au
Zippy Financial is an award-winning mortgage brokerage specialising in home loans, property investment, commercial lending, and vehicle & asset finance. Whether you are looking to buy your first home, refinance or build your property investment portfolio, the team at Zippy Financial can help find and secure the right loan for you and your business.
About the Author:
Louisa Sanghera is an award-winning mortgage broker and Director at Zippy Financial. Louisa founded Zippy Financial with the goal of helping clients grow their wealth through smart property and business financing. Louisa utilises her expert financial knowledge, vision for exceptional customer service and passion for property to help her clients achieve their lifestyle and financial goals. Louisa is an experienced speaker, financial commentator, mortgage broker industry representative and small business advocate.
Connect with Louisa on Linkedin.
Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).
Disclaimer: This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This article is not to be used in place of professional advice, whether business, health or financial.
