Australia’s property market was hit hard in 2018. In some locations, house prices came to a standstill last year and gradually declined later in 2018, further descending into loss all through last year. The price of national houses ended up a staggering 4.8% lower, causing detriment to the property market sector.
With many looking back on 2018 with slight negativity, how is 2019 stacking up so far? Let’s look at what’s trending on the real estate market for 2019.
Home Loans
The Australian Prudential Regulation Authority put the brakes on interest lending in 2018. The banking watchdog removed the restrictions, but overall the process has become more cautious. With these findings from the Hayne Royal Commission which have portrayed banks and credit standards in an unfavourable light, lenders have subsequently restricted home loan criteria even further to aid vendors from having their sales fall through. The upside of this is that when an offer is on the table, you can be reasonably sure it’s official.
Rent Rising
This is the perfect time to look into starting your own investment portfolio as rental supply is slowing down and will continue to do so. As a result, you will find there is more flexibility in rent prices making it perfect for landlords wanting to pay off their mortgages quickly.
Hope for First Home Buyers
Despite some concerning trends for renters in 2019, a silver lining has been that housing has improved affordability. First home buyers made up 18.3% of the property market in 2018, with auctioneers reducing their rates and buyers scoring an affordable bargain on the market. Expect this trend to continue this year as more vendors become competitive with discounting.