Home buyers must act quickly to counteract rising prices

Home buyers must act quickly to counteract rising prices
Date of Publication: Thursday, 01 August 2013 14:14

Aspiring home buyers could quickly find themselves out of the mix if they do not move fast to get onto the housing ladder.


New RP Data figures show that property prices in city districts rose by 2.3% in the three months to August, while homes are selling much faster now than they were a year ago.


A combination of low interest rates and demand from investors has prompted the recovery, with prices up by 5% for the year. It has also knocked two weeks off the average sell time of a capital city home, which are now being sold in just 45 days.


The prospect of another interest rate cut, which could lower standard variable mortgage rates below 6%, will heap further pressure on accelerating prices, especially while rental costs remain high in major cities (read more).


House prices in Perth rose by 4.4% during the last three months, while median house prices in Sydney remain the highest in the country at $570,000.


Though momentum is building, the market is still uncertain, with some cities still reporting falling prices.


Adelaide has seen a 3.1% drop in house prices over the last three months, while Brisbane and Darwin have also seen falls, though Darwin has registered the highest rental yields, at 6.2%.


"The housing sector is being buoyed by very positive conditions in Sydney, Perth, and to a lesser extent Melbourne," said RP Data’s research director, Tim Lawless.


"At the other end of the scale you have cities like Adelaide, Brisbane and more recently Darwin.


"By including rental yields in our housing market outlook, some clarity is provided as to why investors are becoming so active," he added.


James Booker


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Thursday, 01 August 2013 14:14
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