Monday, September 28 2015
Conditions in the national housing market shifted slightly in favour of sellers over the quarter, but overall the market is balanced, according to CBA's our latest Home Buyer Index (HBI).
The number of properties for sale across Australia is roughly in line with the number of housing loans being committed to by our customers. In other words, supply and demand are about equal.
Conditions vary when we look in more detail at housing markets by state, city and region.
Understanding whether you’re in a buyer’s or seller’s market can give you an idea of how long properties might be on the market before they sell, what the level of buyers’ interest might be, and whether the buyer or seller is more likely to have an advantage when it comes to price negotiations.
Around the capitals
Market conditions in the capital cities generally favour sellers more than they do in regional areas. Conditions vary from city to city.
Sydney is rated 5, an extreme seller’s market. This is up from 4 in the previous HBI report, with market conditions shifting further towards sellers over the quarter, and large numbers of buyers creating competition for property.
Melbourne is also rated 5, an extreme seller’s market. Conditions have shifted in favour of sellers over the past year and the past quarter.
Brisbane, rated 3, is a balanced market. This is up from a 2 in the previous HBI report, showing that selling conditions have improved. Sellers who set reasonable prices should find buyer interest.
Adelaide is rated 4, has shifted further in favour of sellers over the past quarter. Sellers are likely to have a slightly stronger negotiating position than buyers.
Perth is rated 3, a balanced market, up from 2 last quarter. Conditions have been balanced for most of the year.
Hobart is rated 2, a buyer’s market, up from 1 last quarter. Supply continues to exceed demand, giving buyers the advantage.
Darwin is still rated 2, a buyer’s market. Selling conditions have remained weak over the past year.
Canberra is rated 4, a seller’s market, up from 3. There are more people actively looking to buy than there are sellers.
Monday, September 28 2015
ABS figures released today show that Australia’s population reached 23,714,272 persons at the end of the March 2015 quarter, 1.4 per cent larger than 12 months previously, said the Housing Industry Association (HIA).
“Today’s figures show that nearly 316,000 people were added to Australia’s population during the 12 months to March 2015,” said HIA economist, Diwa Hopkins.
“This rate of growth, while slower than in previous quarters, is still historically strong.”
“During the 1980s, 1990s and the first half of the 2000s, Australia’s population grew very steadily, with around 225,000 persons added to the population per year throughout that period.”
“Since that time, the number of people being added to the population has exceeded 300,000 persons per year, and this continued to be the case in the year to March 2015.”
“This continued high-volume population increase underlines the importance of delivering a commensurate supply of new dwellings in an affordable way.”
In the year to March 2015, the net overseas migration inflow of 173,054 persons accounted for more than half of the total growth in Australia’s population, while natural increase accounted for the remaining 142,898 persons added to the population during this period.
Across the states and territories, population growth in the year to March 2015 was varied, with the two major population centres, Victoria and New South Wales, recording the strongest growth rates; 1.7 per cent and 1.4 per cent, respectively. Western Australia’s population also grew at 1.4 per cent, while Queensland’s population grew by 1.3 per cent, the Australian Capital Territory’s by 1.3 per cent, South Australia’s by 0.8 per cent, Tasmania’s by 0.3 per cent and the Northern Territory’s by 0.2 per cent.
Wednesday, September 09 2015
Brisbane price growth while modest compared to Sydney has been growing on average at 5% a year since late 2012. This means if you had bought the right type of property in 2012 for $400,000 it is likely to have increased to $463,000 in value.
If you have done nothing over the last few years then you could say the cost of your procrastination is $21,000 a year.
In the last 6 months we have seen a number of areas increase by 8%. If that trend continued that would be 16% per annum.
I've certainly seen my fair share of procrastinators over the last few years. In the end they become pretty easy to spot. They typically have unrealistic expectations of what they can get for their budget so nothing will ever be good enough. They ask a 101 questions, seeking answers to every possible scenario like "what happens if we are invaded by aliens?". They go in circles jumping from property to property, every time their brief is met they look for reasons not to proceed. They make decision based on personal beliefs, myths or emotions rather than facts and data. They react to every snippet of information they hear from family, friends or work colleagues and come back with a new list of questions on some newly discovered topic that generally doesn't relate to their situation.
You generally see these people spin their wheels year after year still looking for the perfect, risk free property that is well outside their budget. Or they end up buying something that is completely unsuitable and under performing.
Contrast this to the clients I have worked with over the last few years, people who have taken action. They seek professional advice, they want to learn and they do ask questions, but only those relevant to their own situation that will allow them to make an informed decision. They have a clear plan on where they are going and want to put that plan into action without delay. They understand that creating wealth is a long term exercise and that wasting time is costing them money. They have realistic expectations of what they can achieve. They accept that investment has risk and doesn't come with guarantees, but they also know that risk can be managed. They are interested in the numbers and performance, not on myths or personal beliefs. And critically they take action.
Friday, September 04 2015
The following article confirms what I have been saying for some time about the Brisbane market. Unless you are in the market trying to buy you would have no idea of how much prices have moved.
Brisbane Property Prices going into overdrive as investor demand surges
Investors from near and far have shifted Brisbane property prices up a gear, as the number of suburbs gaining double-digit growth in the Queensland capital has nearly doubled over the past six months.