Can you time the property market?
Saturday, 4 October 2014 12:00 AM
If you’re considering buying a property, it can be difficult to know whether you have chosen the right time to invest. The health of the property market is closely tied to the strength of the national economy, and the media is full of conflicting – and often alarming – stories about Australia’s overall position within the global marketplace. But if you do have your eye on a property, don’t panic – here are a few reasons to be confident about the economy.
Prices have risen
The property market adjusted quite severely following the GFC, and this left many home owners feeling poorly done by when it came to values. If you look at monthly figures house price can still seem flat; however if you look at year-on-year averages, the latest figures from RP Data show that Australian house prices have risen 10.1 per cent.
Rates are low
The Reserve Bank has held interest rates at record lows for more than a year, and there is no sign of a rapid increase on the horizon, making it an excellent time to borrow. This nation benefits from one of the most secure and well-regulated banking systems in the world, and Australians have been taking advantage of this by saving – household wealth is currently higher than it has been for some time.
Key indicators are good
Australia’s population continues to grow steadily, which tends to breathe life into capital city markets (which in turn lead regional activity). Our annual GDP is the envy of most developed nations, the Australian stock exchange is performing well and unemployment appears to have stabilised for the time being – all good indicators of a healthy economy.
Where can I find free monthly reports on the state of the Australia property market?