the market is turning, so what?
Last week we took you through the four key signs that the housing market in WA is on the move. The next question you’ll be asking yourself is “what will this actually mean for me?”
Well, a turning market brings with it implications on timeframes, costs and availability. Whether you are thinking about buying your first home, upsizing or downsizing, it’s worth understanding these coming changes to determine whether now is the right time to make your move.
The hunt for the perfect block
One of the most crucial parts of building your dream home is location, location, location. More people in the market brings about increased pressure on supply, increased prices and fiercer competition over blocks. To avoid having to compromise on your perfect location and look for suburbs further afield, it’s best to be on the front foot. Right now, buyers can still access low land prices and generous land developer incentives – some of the best value the market has seen in decades.
Bang for your buck
Over the last 5 years, land and building costs have reduced in response to the softer market. A market recovery is likely to bring about increased prices, so it is important to think about what this means for you and your budget. Currently, large homes with plenty of inclusions are more accessible than ever before but with a turning market house sizes, inclusions and incentives will all be impacted, so it’s worth being proactive.
Access to finance
Access to finance has never been better thanks to historically low interest rates and government programs such as Keystart and the First Home Owner Grant. But in a turning market, access to finance may become more of a challenge as demands for loans and grants increase. Lending criteria and thresholds may change, making it harder to access finance that will get you into your dream home.
Longer waiting times
With more people entering the market, building timeframes are likely to slow. Capacity will be tested at each stage of the building process – land titles, financial approvals, shire approvals, builder pipelines and trade capacity. We know that building can be a test of patience, so it’s best to move now to avoid potential bottlenecks.
Low build costs, generous inclusions and developer incentives mean that right now clients are getting the best value the market has seen in decades. What’s more, buying now while prices are low provides a great investment for the future.
Yikes, that’s a lot to think about! Take a deep breath because these changes won’t happen overnight. Do your homework – read up, talk to experts – to make an educated decision on whether now is the right time to make your move. Give us a call if you want to chat, otherwise, we’ll be back next week to talk about the importance of house and land packages in a changing market.
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