Analytics firm, CoreLogic RP Data have indicated in their Quarterly review, May 2015, that returns on residential housing is higher than most other asset classes. Property returns across the nation have increased 25.3% since May 2012, with Sydney being the standout winner having increased 40.2% over the same period.
Medium prices for Sydney as at Aril 2015 are $850,000 for houses and $630,000 for units, with values increasing 5.4% over the last quarter. This is partly due to less stock being made available with 5.9% less houses going on sale compared to last year. According to RP Data, selling time (length of time a property is on the market) has also reduced by 4 days over the last quarter.
Other interesting data from Core Logic RP Data suggests new borrowers prefer variable or floating rates to fixed with 89.5% of new loans taking out variable rates. Discounted variable Interest rates as at May 2015 are 4.55%.
If you are paying at or above the average, talk to us now as some of Mortgage Choice lenders are offering below the 4.55% average.