How is the property market going in the second quarter of 2017?
The saying “Time Flies!” could not be more real!
Now in our second quarter of 2017, we are pleased to report that the property market in our major capital cities has been continuing a steady rise.
According to various reliable sources, auction clearance rates have dropped a little in the major capital cities, but they still remain much higher than this time last year.
Speculators have been predicting a slow down for years but, the Sydney and Melbourne markets have proven them wrong every time. What is driving the boom?
Here is a snap shot of how our capital cities are performing…
Home Loans Sydney
The property boom in Sydney is charging ahead backed by a strong economy and infrastructure improvements. Home buyers are trading in their backyards for balconies and location. Sydney investors also seem willing to sacrifice high returns for the promise of long-term capital gains.
Population growth and the job market remain the drivers of demand and price increases. There continues to be a strong demand for established homes in the inner and middle-ring suburbs while there is some speculation that the increased supply of new units is keeping price rises at a steady and consistent rate.
Capital growth in the Brisbane market may be held steady due to the increased supply in apartments. Nevertheless, the broader housing market has been performing well due to affordability and employment.
Property prices in Canberra have been performing very well over the last year. Inner city homes are in strong demand and this boom has extended to properties in the outer ring due to affordability. Low-interest rates and a shortage of quality stock will continue to drive demand.
Demand for properties in Hobart could be attributed to the low stock levels, affordability, high yields which present opportunities for investors to enter the market.
Affordability is the main driver of price increases in Adelaide. Supply and demand needs are closely aligned resulting in the property market performing steadily.
The property market in Perth has been sluggish due to unemployment, an oversupply of properties, high vacancy rates and poor local economy. This presents an opportunity for some buyers to enter the market.
Should you be looking to Compare Home Loans or find a Mortgage Broker Sydney region, then please do not hesitate to call Customers First Mortgages & Insurance.
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