Market Watch: Buyers are still holding back says report

Font size :
Buyers are still holding back says report
Real estate agents and mortgage lenders may have to be more persuasive if they are to encourage potential buyers to make a commitment on a home. A report from PRDNationwide shows that confidence in ‘the right time to buy’ has been declining since the end of 2013. In Victoria the index fell by 29 per cent over the year to December 2014; in NSW it was down 25.8 per cent; WA 15 per cent; Queensland 8.7 per cent; and South Australia 0.7 per cent. Uncertainties over employment and interest rates are exacerbating the lack of sentiment in the market.

Growth in million dollar Melbourne homes
The Real Estate Institute of Victoria says there are now 59 Melbourne suburbs with a median house price above $1 million. Northcote, Richmond, Strathmore and Flinders all joined the million-dollar-median club in the December quarter. The institute’s figures show that there were 15,127 home sales in the last quarter of 2014 in Victoria and 2,769 of those were sold for at or above $1 million. Melbourne’s inner suburbs accounted for the majority with 1,433 out of 4,572 sales. Auctions were where most of the $1m+ sales were made.
Preliminary figures for the first quarter of this year show that 1,510 of the 8,317 homes sold across the state were in the million and above price bracket but in Melbourne the proportion was lower with 762 out of 2,439. Overall the figures suggest that there is strong demand for larger, more expensive homes in the Melbourne area and across Victoria.

Families help more first home buyers
The National Australia Bank says that more first home buyers are able to buy a new home using its Family Guarantee scheme. It allows family members to save in a term deposit account or use equity in their own home to help a relative to get on the property ladder. Figures show that 6.7 per cent of first home buyers are using the scheme, up from 4.8 per cent five years ago. While the bulk of customers are in the 20-29 age group (73 per cent) there is an increased number of those aged 30-40 before purchasing their first home (21 per cent) while 3 per cent are in their teens.

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

Mortgage News and Articles

CBA unveils new repayment simulator CBA unveils new repayment simulator

The simulator will show customers the differences between different types of repayments Read more

How to tell when a housing market is cooling How to tell when a housing market is cooling You need to check clearance rates, listings, and the price gap, among other factors ... Read more

Growing demand for green apartments in Sydney Growing demand for green apartments in Sydney Both owner-occupiers and investors favour eco-friendly buildings for their energy-saving features and reduced environmental footprint ... Read more

Are property investors as rich as they appear? Are property investors as rich as they appear? A multi-property portfolio doesn’t guarantee easy millions ... Read more

More mortgage news and articles

Sponsored Links

Tuesday, Sep 26, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
  • How much do you want to borrow?
  • How much deposit do you have?
  • How much is your house worth?
  • How much do you still owe on your mortgage?
  • What type of mortgage do you have?

  • How much is your new home?
  • How much do you want to borrow?
  • How soon do you want a mortgage?
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords