The last year’s house price increase set a record-high after 2004’s price spike. House values increased by as much as 16% over the year. But has the golden run begun slowing down and plateauing?
To give you a good idea of the figures, the house price growth has become so high since last year. More so that some houses in Australia are out-earning the country’s highest-paid professionals, such as company CEOs and surgeons.
Read on to learn why the price growth is starting to plateau and the real estate industry’s possible reasons and future potential.
Facts About the Tapering Price Growth
The national index in March of the same year spiked up to roughly 2.8%. Still, the value will consistently decrease in the following months. Since June, housing prices went down to 1.6%, indicating a substantial yet slowly diminishing value.
House Price Remains Out of Reach
While the house price displays a plateauing in value, it still remains out of reach for many households, especially during the COVID-19 pandemic.
In many suburbs, dwelling costs increase faster in a month than wages and other incomes in a year. That’s one of the reasons why house price is slowly getting out of reach for many buyers and renters.
However, the economic and business restrictions influence the loss of momentum in terms of house prices in the long run.
The successive COVID-19 outbreaks and lengthened lockdowns caused most of the Federal Government’s financial assistance support programs to expire without giving enough time for beneficiaries to get back on track.
The Future of House Price Growth Rate
As Australian households and businesses push through the second half of 2021 and the global health crisis, house price growth rates will continue tapering down. Some factors include restraints in affordability and the imbalance of supply and demand.
Credit policies for major banks and lenders may also change, resulting in another headwind for the real estate industry.
Despite that, the demand for dwellings remains strong. We can help you find the ideal lender and negotiate housing rates that work for you with a reliable mortgage broker.
Speak With a Mortgage Broker Today
House prices broke another long-standing record since 2004. With that, finding the perfect home with a sustainable financial option will go a long way for your security and peace of mind.
If you want to pursue your dream house, don’t let the pandemic stop you. Our mortgage brokers at Plan A Mortgage will discuss your current position and find a home loan that best suits your needs.
Get in touch with us today at 1300 052 055 or fill out our contact form.
Disclaimer: This article presents content in a general nature and is solely for informative purposes only. It does not aim to provide public nor personal financial or tax advice. It does not include nor put into consideration your individual situation nor circumstances. Before taking an active decision, seek expert advice and thoroughly examine your current position. Moreover, this article is protected by intellectual property and copyright laws and should not be reproduced without prior written consent.