The housing market continues to run hot as strong buyer demand and quick sales support prices. However, there are signs some of the heat has come out of the market.
As we already know the Reserve bank of Australia has held up the interest rate till 2024, we are already seeing big lenders putting their shoes up front and started to increase their long-term fixed mortgage rates.
Now the Adelaide median price is sitting at $518,000 as per the March quarter.
According to Head of Research Tim Lawless, “the winter market will be hotter as compared to the same time last year. Including buyers demand will also at a record level high, overall stock for sale remains close to historic lows, so for those thinking of selling, there is the favourable condition to take advantage of this market”.
By looking at the current situation we can say because of the high demand, buyers will find stiff competition in the market. Which leads to affordability concerns. As we have seen that removal of the Homebuilder grant has also impacted the market and the source of demand from the market.
There are various stimulus packages offered by the State Government, but it is not closely related to the Homebuilder was.
We can expect new homes coming up in the market. As the new home for sale were slightly low during the month of April but were better than the same time last year.
The sales in SA last week were higher, comprising of 62.3% higher than the same period last year.
What can we expect in the coming month?
We are already experiencing some movement from the borrowers towards their mortgage and will be higher till the Term Funding Facility comes to closure. Which can, furthermore, hinders the ability to borrow and how much they can borrow.
The way this market is moving forward as we can see some stocks are already hitting the market, and demand continues to surpass supply. We believe prices will continue to rise but the growth rate will be slower.
Take this opportunity in your favour and achieve more prices that’s all we can say.