It would appear evidence is emerging showing the national housing market downturn, which began in May 2022, is slowing.
CoreLogic has reported the nation’s median property price fell 1.0% in January which is the smallest month-on-month decline since June 2022.
While the national median price fell 4.1% in the October 2022 quarter, it fell only 3.2% in the January quarter. In Brisbane city, prices fell 4.8% in the three months to January which is lower than the 5.4% seen in the three months to October.
In other words, while prices are still decreasing in the capital cities, they are doing so at a decreased rate and, despite these figures, property prices are actually higher in most parts of the country than before the pandemic.
However, this has, in turn, lead to deposit requirements being higher.
Domain compared property prices in the December quarters of 2019 and 2022, and found that buyers needed tens of thousands of dollars more today if they wanted to buy a house and put down a 20% deposit.
In 2019, the median house price in the December quarter was $583,652 with a deposit of $116,730 required. However, the median house price in the December 2022 quarter jumped up to $801,449 meaning the deposit required was now $160,290 – an increase of $43,560!
These figures are based on a 20% deposit however, you could decide to use a smaller deposit.
Generally, if your deposit is lower than 20%, you will need to pay “Mortgage Insurance” (which can potentially be added to your loan). While it’s never a good idea to pay an added fee, it can be money well spent if it lets you buy a property several years ahead of schedule and in the timeframe that suits your life choices.
So, how is the property situation in the Redlands at the moment?
The below chart shows how many properties have been listed in the last 30 days and how long they have taken to settle (based on CoreLogic figures).
|Suburb||# New Listings in Last 30 Days||Average Days on Market|
As can be seen, most suburbs are now taking almost 3 months for a property to sell. Having said that, we settled a property last week in just under 2 weeks because everything lined up perfectly for both the sellers and buyers!
Statistic are just that…statistics, they don’t explain individual circumstances or reasons for the above figures.
I’m quite often asked “when is the best time to sell?” The answer is …. when the time is right for YOU and YOUR CIRCUMSTANCES.
Remember, if you need any help or advice, I am just a phone call away.
All the best, Simon (0408 734 419)
Source: CoreLogic / Grace Taylor, Taylor Mortgages