Data Indicates that High-End Residential Property is Due for a Better 2013
Announcement posted by Smartline Rockingham 18 Apr 2013
Mortgage broker in Rockingham reveals why high-end property in suburbs such as Baldivis could experience a substantial upturn in 2013.
Rockingham, WA, April 18, 2013 - Currently, real estate market statistics are moving in a pattern similar to the beginning of the housing market recovery at the end of 2008. After property had bottomed out in the Global Financial Crisis (GFC), it was the more affordable properties that showed the first movement, followed by movement in the premium property market.
According to current data, home values in the capital cities have started to rise in the recent months, even as prices are still slightly lower than the same time last year. According to new information published by RP Data, home prices across all three major sectors are beginning to exhibit the same market patterns, with the affordable end, the middle 60%, and the premium end nearly intersecting as one line when the information is shown on a graph.
From September 2011 to September 2012, both the affordable end and the top end areas in the capital cities and suburbs reported a decline of -1.7%, while the middle 60% reported a fall of -0.3%. In the most volatile capital city markets, those with the most severe drops are the most affordable areas around Brisbane, down -13.2% from their pre-GFC peak, and the premium areas in the Brisbane market, which are down -10.8%. Melbourne’s top end property is down -10.4%.
In the capital cities, the average home value has fallen by 6.1% from the onset of the GFC to September 2012. The largest decreases in value were in Melbourne, at -8.3%, and Perth with -6.8%, while the least change was in Canberra at -3.2%, and Adelaide and Darwin, both at -3.3%.
From the post-GFC to market peak to the current trough, home values have fallen -7.4% individual cities with the largest declines have been Darwin, with -19.7%, and Hobart, with -14.6%. Those capital cities least affected were Sydney, at -5.0%, and Canberra, with -5.3%.
However, capital city housing prices are currently on the rise. They bottomed out in May 2012, but rose 2.1% by October 2012.
Justin Smith, Principal of The Mortgage Gallery Rockingham, is encouraged by the statistics: “It’s been quite an interesting journey the last few years. Before the Global Financial Crisis, most investors acted as though one could count on real estate prices to rise every day with the sun. If there’s one thing the last few years have taught us, it’s that even real estate is subject to market peaks, valleys, and troughs.”
Smith continued, “Many in the housing, property, and mortgage industries are surprised that prices haven’t recovered to peak level yet. In the Perth area and in Western Australia, if the past and other economic factors are any indication, prices should recover fully to peak prices. The mining boom has brought a lot of jobs and a lot of money into Western Australia and most builders are expecting a labour shortfall by the end of the year. Demand for houses is rising and it is only a matter of time before supply dwindles and prices once again rise to former levels.”
Smith concluded, “It certainly appears that prices are about to rise on all levels. For anyone who is thinking about buying a new home or upgrading their current one, it might be a good time to act.”
The Mortgage Gallery Rockingham are the premier mortgage brokers in the Baldivis, Kwinana, and Rockingham areas.
For more information about a home loan, call 08 9527 1800 or visit their website: http://www.themortgagegalleryrockingham.com.au/
According to current data, home values in the capital cities have started to rise in the recent months, even as prices are still slightly lower than the same time last year. According to new information published by RP Data, home prices across all three major sectors are beginning to exhibit the same market patterns, with the affordable end, the middle 60%, and the premium end nearly intersecting as one line when the information is shown on a graph.
From September 2011 to September 2012, both the affordable end and the top end areas in the capital cities and suburbs reported a decline of -1.7%, while the middle 60% reported a fall of -0.3%. In the most volatile capital city markets, those with the most severe drops are the most affordable areas around Brisbane, down -13.2% from their pre-GFC peak, and the premium areas in the Brisbane market, which are down -10.8%. Melbourne’s top end property is down -10.4%.
In the capital cities, the average home value has fallen by 6.1% from the onset of the GFC to September 2012. The largest decreases in value were in Melbourne, at -8.3%, and Perth with -6.8%, while the least change was in Canberra at -3.2%, and Adelaide and Darwin, both at -3.3%.
From the post-GFC to market peak to the current trough, home values have fallen -7.4% individual cities with the largest declines have been Darwin, with -19.7%, and Hobart, with -14.6%. Those capital cities least affected were Sydney, at -5.0%, and Canberra, with -5.3%.
However, capital city housing prices are currently on the rise. They bottomed out in May 2012, but rose 2.1% by October 2012.
Justin Smith, Principal of The Mortgage Gallery Rockingham, is encouraged by the statistics: “It’s been quite an interesting journey the last few years. Before the Global Financial Crisis, most investors acted as though one could count on real estate prices to rise every day with the sun. If there’s one thing the last few years have taught us, it’s that even real estate is subject to market peaks, valleys, and troughs.”
Smith continued, “Many in the housing, property, and mortgage industries are surprised that prices haven’t recovered to peak level yet. In the Perth area and in Western Australia, if the past and other economic factors are any indication, prices should recover fully to peak prices. The mining boom has brought a lot of jobs and a lot of money into Western Australia and most builders are expecting a labour shortfall by the end of the year. Demand for houses is rising and it is only a matter of time before supply dwindles and prices once again rise to former levels.”
Smith concluded, “It certainly appears that prices are about to rise on all levels. For anyone who is thinking about buying a new home or upgrading their current one, it might be a good time to act.”
The Mortgage Gallery Rockingham are the premier mortgage brokers in the Baldivis, Kwinana, and Rockingham areas.
For more information about a home loan, call 08 9527 1800 or visit their website: http://www.themortgagegalleryrockingham.com.au/