The average price of a house in Australia is close to $1,000,000, according to 7News. Property prices have soared across the country over the past year and show no sign of letting up just yet. If you’re desperate to get your hands on your very own place, sit tight as better times are coming.
Just 35% of Australians feel that now is the right time to buy a house. This means fewer people are putting their homes on their market. When there are fewer properties to choose from, prices typically increase. But this grim outlook shouldn’t remain for too long. It’s strongly believed that sky high house prices are the cause of people’s negativity towards the housing market. The only way this will change is for prices to drop to more affordable levels, which experts predict will happen soon.
By the end of this year, house prices will have increased by 22%. Next year, the increase will be just 5%. From 2023 onwards house prices are expected to really start coming down, according to investment experts. While this might seem like some time away, it gives prospective homeowners the chance to get their finances straight. First, you should check what size home loan you can afford. A home loan calculator will allow you to work this out based on different loan terms and interest rates. This period also gives you the chance to save up a larger down payment. This is beneficial as the bigger your deposit, the cheaper your home will be when you do eventually buy one.
Interest rate hike
It has just been revealed that interest rates in Australia are likely to rise earlier than originally anticipated. This is good news if you want to buy a house as News.com reports that every 1% inflation hike will lower property prices by 20%. Not only that, but if you’ve got your down payment stashed away in a savings account, you’ll earn more interest on it when rates do rise. This will work in your favour as you won’t have to borrow so much cash from a lender.
The Australian property market is particularly interesting right now. While no one can say for definite what will happen to it in the future, it’s looking like many people will financially benefit from waiting to buy a home for a little while.
