The big four banks of Australia have forecasted that house prices will rise by more than 10% this year.
- House prices could increase by 17% this year.
- Regulators will keep a close eye on price increases.
- First home buyer loans were up 75% over the last three months.
- 35% of people buying property for the first time are taking out owner-occupier loans.
- House prices could increase by 10% this year. (This is a revision of their 8% price growth forecast.)
- Owner-occupiers make up for 75% of applications.
- House prices could increase by more than 10%.
- Location was a factor, as prices in regional areas were up 11.4% while those in cities were only up 4.8%.
- Customers are paying off their home loans faster due to low interest rates.
- House prices could increase by 10%.
- Turnover is low, and supply is tight, so houses are being well bid.
Even the First Home Loan Deposit Scheme cannot help first home buyers due to the rapid rise in property prices.
Those who qualify for the scheme are buying properties further from cities or other housing options like townhouses or apartments.
These schemes may need to be reviewed to ensure they are still suitable for the current conditions.
How hot is the property market?
The preliminary clearance rate nationally for the weekend auctions was 80.5%. Sydney’s was 81.4%.
Even Perth is experiencing a significant return of investors fuelled by iron ore and gas despite tougher lending conditions and high borrowing rates.
With such a high clearance rate and an influx of investor activity in Perth, Australia’s property market is still enjoying a boom.
If you think that the property market is hot right now, it could get hotter in the next few months.
Anyone waiting for property prices to drop will be in for a long wait.
If you’re looking to enter the property market, get pre-approved for a home loan and start looking before property prices blow out.
Big Four Improves Turnaround Time
The big four banks of Australia have streamlined their processes and improved their turnaround time for home loan approvals.
ANZ, Commonwealth Bank, National Australia Bank and Westpac revealed that their turnaround time is two days or less for simple home loans.
Their turnaround time was slower before due to regulators and responsible lending restrictions.
At the beginning of 2021 and the end of 2020, the delays in bank approvals were causing massive headaches for buyers looking to take advantage of increasing property prices.
However, banks have since worked hard to reduce those timeframes, and now buyers should be able to rely on approvals within a reasonable time, which is a good thing in a hot property market.
With low interest rates and improving turnaround times, our mortgage brokers can help you find the right home loan. Call us on 1300 889 743 or fill in our free assessment form today.