April has arrived, and the weather is starting to cool down. As a nation, we often put off the home buying process until the summer vacations are over. Consequently, the arrival of autumn marks a notable shift in the pace of the real estate market. Reviewing the sales trends for the beginning of 2014 allows home buyers and property investors to determine where the market is heading as the year progresses.
Property Outlook for May 2014 by city
Looking at emerging trends in real estate markets across the country can give buyers a better idea of what to expect in May.
Sydney continues to experience very high demand that has led to shortages in the market. Fierce competition continues to push prices up in the capital, and people who are trying to find their dream home can find the process very time consuming.
Melbourne is enjoying a balanced market with sales that are holding steady. The sharp increases from the beginning of the year are starting to even out.
Brisbane is another city with a balanced market and steadying prices. Fair competition makes it easier to find properties to purchase in the city.
Adelaide has a balanced market with steady demand for existing homes. That said, new home construction is on the rise, presenting many opportunities for home buyers and investors alike.
Perth is proving to be a popular city that is experiencing a housing shortage. High demand for existing homes has caused an increase in prices. New home construction and home sales volumes are increasing.
Hobart is just starting to experience a recovery in the real estate market. The market is fairly balanced, though we are starting to see strong demand for new homes. The volume of home sales and new home construction are both on a steady incline in Hobart.
Darwin may have the most difficult real estate market to enter. A severe shortage of housing in the city has resulted from a sharp increase in demand for homes. New home construction has increased substantially in Darwin.
Canberra has a declining market and a fair demand for new homes. Unlike other capital cities, it is extremely rare for real estate in Canberra to sell for more than its value.
Buying in May and beyond
What do these trends mean for home buyers and property investors? Cities including Sydney and Darwin may not be viable options due to extremely high prices and demand. Melbourne and Adelaide are good choices because of an increase in home sales coupled with steadying prices.