The Property Winds Of Change Are Here – A Dynamic Shift In Housing Affordability
The recent release of PRDnationwide’s ‘2018 Australian Economic and Property Report’ and Capital City ‘Affordable & Liveable Property Guides 1st Half 2018’ signals a significant change in the property market generally and particularly within the housing affordability landscape. The set of reports provides an overview of the key economic drivers and their impact on the property market, assisting home buyers and investors in making fact based property decisions.
Following sustained growth in residential values in major city markets over the past 3 years, there have been a number of factors contributing to a slowdown in many markets. A tightening of lending policies, increased costs for offshore buyers and a general perception of peaked prices contributing to these changes.
“For the first time in the past 24 months we are seeing capital cities decline in the average annual median price growth and metropolitan markets experiencing a slower decrease, whilst their regional counterparts are standing out with local markets recording a positive growth – key indicators that market dynamics are on the move”, commented Mr. Tony Brasier, PRDnationwide Chairman and Managing Director.
The PRDnationwide Australian Economic Property Report shows an improvement in consumer sentiment over the past 12 months (3.4% increase) and placed in a positive position at 102.4 index points (98.6 previously). This positive index reading, evident since late 2017, continues past the 1st quarter in 2018.
Over the past 3 years PRDnationwide’s property reports, tracking the market at both a national and capital city level, have reported on an exploding property market in Sydney and Melbourne, increasing affordability issues and first home buyer’s ‘cries of help’ in both capital city markets.
The disparity between the markets when comparing the median prices between Sydney and Melbourne with that of Brisbane and Hobart, whilst watching the growth rate of metro versus regional markets left most of the market wondering how much longer can we really have such high growth.
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