{"id":5318,"date":"2023-09-14T09:39:34","date_gmt":"2023-09-13T23:39:34","guid":{"rendered":"https:\/\/financialplus.com.au\/?p=5318"},"modified":"2023-09-14T09:39:34","modified_gmt":"2023-09-13T23:39:34","slug":"property-market-climbs-towards-new-peak","status":"publish","type":"post","link":"https:\/\/financialplus.com.au\/property-market-climbs-towards-new-peak\/","title":{"rendered":"Property market climbs towards new peak"},"content":{"rendered":"
Australia\u2019s housing market is making a bigger comeback than Barbie.<\/p>\n Despite interest rates rising 4% in a year and a cost of living crunch,\u00a0home values have skyrocketed<\/a>\u00a0with prices soaring 4.9% nationally since March 2023.<\/p>\n The strength of the rebound has wiped out about half the losses recorded in the downturn between April 2022 and February 2023, when home values fell 9.1%.<\/p>\n In fact, the value of Australia\u2019s housing market just hit $10 trillion again \u2013 the first time the total estimated value hit double digits since June 2022.<\/p>\n CoreLogic says three factors are pushing up property values:<\/p>\n \u2013 Net overseas migration:\u00a0<\/strong>more people are arriving from overseas than are leaving. That\u2019s a lot of extra people looking for a place to live.<\/p>\n \u2013 Use of savings, profit and equity:<\/strong>\u00a0upgraders are using savings, equity or profits from their home to buy their next place instead of borrowing more. This has seen demand for property stay strong even though rates have climbed higher.<\/p>\n \u2013 Tight supply:<\/strong>\u00a0the volume of homes listed for sale is a lot lower than in previous years. That spells competition between buyers, which is putting pressure on prices.<\/p>\n Home values have been rising steadily over the past six months. What happens from here hinges on how interest rates move, and whether the economy stays in good shape.<\/p>\n As a guide, CoreLogic is expecting some heat to come out of the market recovery by the end of 2023.<\/p>\n That\u2019s great news for home buyers \u2013 as long as cooler prices aren\u2019t the result of more rate hikes or a sluggish economy.<\/p>\n In today\u2019s environment of rapidly rising home values, home buyers can score a winning edge by having their ducks in a row before inspecting homes listed for sale.<\/p>\n This increasing need to be organised is one of the key reasons why\u00a067% of Australians turn to a mortgage broker<\/a>\u00a0for expert support when they buy their home.<\/p>\nThe property market has thumbed its nose at higher interest rates, with values rising almost 5% since March. Here\u2019s why national housing prices are climbing higher.<\/strong><\/p>\n
So what\u2019s driving home prices higher?<\/h3>\n
Will property prices keep rising?<\/h3>\n
How to get ready to buy your next home<\/h3>\n