FIRST home buyers have made a bold return to the property market after months on the sidelines, with Queensland welcoming the biggest increase. Young Queenslanders have seized upon the opportunity to jump on the property ladder and take their first steps to personal wealth creation.
The latest report from the Real Estate Institute of Australia and Adelaide Bank reveals the number of loans to first time buyers increased by 14% during the last quarter, with increases in all states and territories except Tasmania.
That’s despite government grants for first time buyers in some states not coming into effect until July 1.
Queensland welcomed more first-home buyers into the market than any time in the past year, with the number of loans increasing by nearly 12% in the quarter and almost 20% compared to the same time last year.
There was also some relief for renters during this quarter. The proportion of median family income required to meet rental payments dropped by more than half a per cent to 24%. Rental affordability improved slightly in Queensland, dropping 0.7% to 23% of income required to meet median rents.
CoreLogic predicts an even higher number of $1M+ sales next year. Good quality property will continue to rise in value – over time. Prices can and will go higher in the future. When we look at the number of $1M+ sales, it’s just another market measure telling us that Australian real estate is robust with plenty of room left for future long-term growth.
Think back 10 or 15 years and recall what you thought of property prices then. Did you think Sydney was expensive? Did you think prices couldn’t possibly go higher? Take a look at these statistics for $1M+ sales today compared to 10 years ago:
Today – 7.9% of house sales and 2.8% of apartments sold for $1 million-plus
10 years ago – 2.4% of house sales and 2.4% of apartments sold for $1 million-plus
The lesson to be learned from these numbers is two-fold. Firstly, prices are going to keep going up in our capital cities. Secondly, the best time to buy is as soon as you can and then hold for the long term. Timing the market isn’t necessary if you have a long-term view. What really matters, if you want to make money in real estate, is the time you spend IN the market, not the timing of your purchase. Buyers should keep this in mind this Spring.