While Sydney and Melbourne saw prices fall from their peaks, Brisbane, Hobart and Canberra all enjoyed a lift in property values.
According to the latest CoreLogic Hedonic Home Value Index1, property prices fell by 8.1% in Sydney over the 12 months to December 2018. Melbourne wasn’t far behind, with the Victorian capital recording price falls of 5.8%.
At the other end of the spectrum were Hobart, Adelaide, Brisbane and Canberra, which recorded property price increases of 9.3%, 1.4%, 0.3% and 4% respectively.
So what’s in store for 2019?
Well, if you take the word of various economists, it would seem 2019 is set to be a lot like 2018.
In Domain’s Property Price Forecast report2, economist Trent Wiltshire said prices should continue to rise in Brisbane and Adelaide, with the two cities set to record growth of 4% and 2% respectively. Perth is expected to enjoy a reversal of fortunes as the state’s economic outlook improves, with house prices forecast to rise by 5% in 2019.
Meanwhile, Sydney and Melbourne are once again forecast to be the weakest performers, with the cities expected to endure a further dip in values.
So what does all this property price movement mean for you and your property goals?
Depending on whether you are looking to buy, sell, or do both, the property price fluctuations can mean different things.
Whether you are looking to buy an investment property, your first home, or even move your family into a better home, 2019 is a good year to achieve your goals.
In Sydney and Melbourne, prices are falling, which means you may be well positioned to snap up a bargain.
In Brisbane and Adelaide, where prices are rising, now is a good time to get your foot on the ladder and take advantage of the competitive home loan interest rates on offer.
Perth values have dropped by a total of 13% since 2014, and with expectations that the city’s property market will head into an upswing in early 2019, buyers who get in early could snap up some value buys.
At the end of the day, when it comes to buying property, it pays to buy when it suits you and your financial situation. Often, potential buyers spend years on the sidelines waiting for the market to crash before they take the plunge. The problem with waiting for the ‘best time to buy’ is it often doesn’t come. Sometimes, the ‘best time to buy’ slides right past us without us even knowing.
So, if you are thinking about buying property this year, the best thing you can do is speak to your mortgage broker. They can help you understand the current market conditions, provide you with property reports, and organise the right financial solution for your needs.
While nobody wants to sell their property when prices are falling, sometimes we have no choice. If you want to buy that bigger home, you may have to sell the home you already have. The good news is, if you are selling your owner-occupied home when prices are falling, then you are also buying your next home when prices are falling.
Before you decide to sell, ask yourself the following:
- Do you need to sell now?
- What’s the property market doing? Are property values climbing or falling in your area?
- Have you spoken with your mortgage broker to understand your options?
If you don’t need to sell, and your property market has come off the boil in recent months, then it might be worth keeping the property for now.
Your local mortgage broker can take you through all of your financing options, including investment loans and bridging finance.
At the end of the day, the property market is confusing and complex, so the key is to not go it alone. Your mortgage broker can arm you with all the resources you need in order to make the right property decisions for you and your financial goals.
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