Could now be the right time to buy?
So, you’re thinking about building a home of your own but are wondering if now is the right time to take the leap? We get it, the decision to build a home is a big deal!
Could now be the right time to buy?
There’s been plenty of change recently, and it’s more important than ever to get the facts. The projected economic and housing market fundamentals are looking positive for new home buyers, but it’s even more important to think about when the right time for YOU is!
We’ve unpacked the facts and armed you with important considerations to take charge and make the right decision for you and your family.
The economic fundamentals are positive
The cash rate in Australia is predicted to stay at 4.35% for most of 2024.2 It’s important to remember that a 0.1% cash rate was not normal. A fall of that magnitude has never happened before, not even during the global financial crisis. Australians hadn’t seen an increase since 2010, which means many homeowners hadn’t previously experienced an interest rate rise after being in an artificially low interest rate environment.
Worried about prices and future value? The WA economy is expected to grow by 2.25% in 2023-24.3 Employment security is an important consideration when thinking about a home loan, 17% of WA businesses are reporting job vacancies which indicates a strong employment market within our growing economy.4
Many Australian homeowners will take out a 30-year loan. These years will see many economic cycles (both highs and lows), as the last 30 years have demonstrated, which is completely normal! The right time to buy is when you are personally ready.
The housing market fundamentals indicate growth
When looking at median dwelling value, the prices of homes in Perth are some of the lowest across Australia.5 Long term, Perth is usually the fourth most expensive city for housing, this indicates it’s currently undervalued and has the potential to grow.
There are a few indicators that point to the growth in house prices and the rental market is one of them. Everyone in the rental market right now knows vacant homes are tricky to find. The WA population is quickly expanding with an increase of 3.1% last year, including almost 51,591 overseas migrants.6 By 2026, this is expected to result in an estimated shortage of 20,000 houses.7 Generally, as the rental market gets more expensive, more people may turn to buying their own home.
So, is now the right time to buy?
The perfect time to buy your own home is when YOU are ready. Timing the market is almost impossible without a crystal ball, the most important thing to consider is your personal circumstances. The golden rule is to ensure you can afford what you buy.
Building a home is a big deal, but it doesn’t have to be stressful – it should be fun! You should make sure that you’re in the best hands to see if you’re in a good position to build your own home. Our award-winning finance partner, Resolve Finance, are here to make things easy for you. Whether it’s through using their online mortgage calculator or consulting with a mortgage broker, our team of in-house experts are in your corner.
Once you have your ducks in a row, you can consider your next steps – budget, research and have a wander through display homes for inspiration. When you are ready, one of our friendly New Homes Consultants would be happy to help you find a home design to suit your needs.
Got questions?
Sources: [1] RBA, Dec 23 • [2] PropTrack, Feb 24 • [3] WA Govt Economic Profile, Nov 23 • [4] ABS, Sept 23 • [5] CoreLogic, Feb 24 • [6] ABS, Dec 23 • [7] Housing Australia, Oct 23. The West, Mar 24 • [8] REIWA, Feb 24 • [9] SQM Research, Feb 24
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