As Australia’s house prices soften many would say this represents a great time to buy. That obviously depends on what happens next.
Australia home values are down further in 2011, as home buyers wait to see what will happen next with mortgage interest rates and home loan exit fees. If you have to buy now, you should expect a bargain, but if you don’t it may pay to see where the bottom really is, and that means waiting for prices to start rising again.
Most expensive homes have fallen the most, as business and investors have been hit the most.
Home prices are lower throughout Australia with Australia’s most expensive homes showing the biggest price drops.
The median home price in Australia’s capital cities is now $468,000.
Sydney had the highest median price of $515,000, with Hobart the lowest at $315,000.
Regional House prices now show weakness.
House prices outside the capital Cities in Regional Australia fell 0.6 per cent just in April.That brought the median home value down 1.5 per cent over the last quarter, and 1.8 per cent over the year to April, with the median price at $325,000.
The Highest falls in home prices were recorded in Australia’s Rich suburbs.
The steepest price falls generally occurred in the most expensive city suburbs, with the last 12 months falls of home located in the most expensive 20 per cent of suburbs had an average fall of 5.4 per cent.
In contrast, properties in the lowest-priced 20 per cent of suburbs have performed best, with an annual fall of 0.5 per cent.
This shows that home buyers are looking for value for money, and investors, and business have been hit hard by the weakening economy and falling share market.
Brisbane home prices fall most
Brisbane showed the biggest falls in median house prices with a drop of 3.1 and Canberra fared best with a rise of 0.8% in house values for the year.
In fact, Brisbane’s property prices have taken the biggest hit since the Global Financial crisis. with median house prices 24 per cent lower than Sydney’s and 14 per cent lower than Melbourne’s.
This compares with before the GFC, when the gap between Brisbane and Sydney median dwelling prices narrowed to just 6.4 per cent of each other.
Is now a good time to buy a home?
If you are in Sydney, it seems that any time is a good time to buy a home. In Brisbane where we have had big relative falls in home prices it suggests that now is the time to buy a home. But whether that was a good move or not depends on how house prices move over the next 12 months. Some would caution that waiting for median home prices to start moving up again may make sense for home buyers.
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Rick Adlam [HomeMate] has been working in the homebuilding since 1985 as a new home consultant with Iconic builder AV Jennings. He has also worked in home design consultancy with Dixon Homes, VillaWorld, Galaxy Homes, Merlin Homes, Simonds Homes, Award Homes and Orbit Homes. Rick currently consults in the development of Mr Mortgage for mortgage brokers and HomeMate for new home buyers
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