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Vendors are seen as the biggest winners in the Adelaide real estate market.

Archive for November 2021

Vendors are seen as the biggest winners in the Adelaide real estate market.

Adelaide has shown the record-breaking median house price with 13.82% YoY and about 3.7% increase from the previous quarter.

Adelaide real estate continue to be a momentous consideration for many homebuyers and investors looking to buy houses in Adelaide.

This is the time to take advantage as you will not find the same market moving forward in the new year.

High rental yield and strong capital growth is what is dragging potential buyers and investors to put their bucks on Adelaide real estate market.

But as we move forward, we can expect the affordability constraints will start to bite. Especially with the First Home Buyers.

According to ANZ, “the double-digit gains in house prices over the past year won’t be repeated in 2022, with recent weakness in housing finance suggesting price growth will continue to ease over coming months after peaking in March.

Home loan interest rates in Adelaide is currently at 0.1 % and it’s expected that the RBA “hold” this until the first half of 2023.

However, fixed interest rates are already rising.

A faster than expected rise in the interest rates will increases the risk and the prices slow more than we currently expect.

For example, you submit for a home loan with an interest rate of 2.5 %, the bank will assess if you can able to make repayments if the interest rate rises to 5.5 % rather than the previous serviceability notion of 5 %.

So, the home loan borrowing power for the average borrower will reduce by around 5 %.

You can only buy property once, mistakes will cost you a lot, even can change the pattern of the monetary path you are already on, you can end paying for one single mistake for many years to come. So, you must look at your affordability and align your goals accordingly

The dream of many Aussies is gradually going out of reach because of sky-high property prices.

House prices have become so unaffordable that more and more first home buyers are being locked out of the market.

House prices have become so unaffordable that more and more first home buyers

are being locked out of the market.

The dream of many Aussies is gradually going out of reach because of sky-high property prices.

Huge thanks to Daniel for shedding some of his expertise and knowledge and providing us an outlook in our last episode of What expert thinks- if you missed out check the link : https://fb.watch/9iJS-1nKJX/

Earlier this year, low-interest rates, the fear of missing out (FOMO) accompanied by low supply drove prices in every Australian capital city to an extent which we haven’t seen in the past 8 years.

According to Reserve Bank of Australia Governor, “Philip Lowe on Tuesday ruled out an increase in mortgage interest rates in 2021 but opened the door for a hike sooner than the timeline it had set of not before 2024”.

I would say a few things will change the outlook of the real estate market in Adelaide and will bring the positive aspect toward the property sales in Adelaide.

1) Opening of the borders.

2) Return of immigrants may provide a source of support at some point,

Combining these factors with the subtle tightening of credit assessments set for

November 1, we can see that the prices will get stabilise as the market moves forward and getting the ‘dream’ property for First Home Buyers will be achievable.

Now, few sellers are holding off on listing their property for sale as they are scared that it would be difficult for them to move to the next one as the supply in the current real estate market is very low.

As the market gets balanced out in the coming months, we could expect more sellers will feel confident in listing their homes for sale.

It’s very simple – More listings mean more choices for buyers and less stress on their purchasing decisions.

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2021 Has Delivered Unbelievable Growth Across Australian Real Estate Market

That made me think….

 Is it the right time to take advantage of current selling conditions so that you can move into the next phase of your life?

 Or should you wait and see if prices continue to increase?

 That leads to another question….

 Will it be more expensive to purchase your next property?

Let’s explore the current real estate ambiance and what could be the pros and cons of waiting versus selling now and what the real estate market will provide us till the first quarter of 2022.

For sure affordability is a big one. Many buyers have faced this year’s double-digit gains.

It’s expected that the Fear Of Missing Out (FOMO) seen in 2021 will be cooled off by prices reaching unattainable levels.

Let’s address some question which has been unanswered for a while.

What do you think about the current real estate market in Adelaide? and what could be the scope of property market for the year 2020?

I feel that the market is very hot now with some buyers being priced out of the market. Good time to sell and a hard time to buy. I could see trends of property prices increasing in 2022– however, as of today, the 1st of October lenders are increasing their sensitivity rate which for the consumer sees borrowing capacities reduce. Fixed rates have also been increased with some of the major lenders – which could indicate perhaps the property market easing up a bit.

What challenges do buyers face in real estate transactions nowadays?

In today’s market, we are seeing more and more clients wanting pre-approvals. This is due to a lot of properties going to auction now. In a market as hot as it is currently, we can on occasion see an issue with a client purchasing a property over and above the bank’s valuation figure and needing to come up with extra funds at short notice to ensure the purchase goes through, and they don’t lose their deposit!

What could be the possible reason that can hinder the chances of home Loan pre-approval?

Getting the right advice is key to getting approval – Organise a pre-approval, understand fixed and variable interest rates and how they can work to your advantage, deposit requirements, and borrowing capacity. It is important that whoever is assisting with your lending requirements understands your goals to give you the right advice.

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