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