Thursday 23rd May 2019
The falling market can be both good and bad for homeowners and first-time home buyers – while properties may lose value, lower prices make it a cheaper and thus more desirable time to purchase a house or apartment.
If you are thinking about purchasing your first home, now is the time to take advantage of the lower prices.
Low interest rates
With the housing market slightly down, low-interest rates are likely to be offered when you are applying for home loans, as reported by news.com.au. And when home loans have lower interest rates, homes are more affordable, leading to an increased demand in the housing market.
Fluctuations in the market
The housing market in Australia changes all the time. And, changes don’t just happen in one area – prices could be up in one city and down in another. This means that when prices are low in the location you want, it’s better to jump on those prices than to wait to see what the market does in the coming months and years.
Because buying a home is a long-term investment, buying at a low price is more important than buying during a good time for the overall housing market. Property is likely to increase in value over a long period of time, even if the housing market is dipping right now.
The Australian Property Investor reported that the nation’s population is growing by 1.5 per cent each year, and that on average over the last 15 years it has increased by 305,000. Around 60 per cent of that increase is attributed to immigration. Because numbers have been fairly steady in the last two decades, it’s likely that the population will continue to see steady growth.
Thus, while the demand for housing is not the only factor that affects the overall market, it is generally accepted that more demand for homes will boost the industry over time, as Macro Business points out.
If you’re currently considering buying your first home, it’s a great time to buy with the current falling housing prices in Australia. Low interest rates on home loans, fluctuations in the market that will likely end up in an overall increase, and steady population growth are all good reasons to start looking.
Our team are here to assist you with the home loan process, so get in touch today for more information about your options.