How to look for a Neighborhood
Before you embark on your house search it’s essential that you take the time to consider where you want to live. Why? Because your home is a big investment and location can make all the difference between finding a dream home that will give you years of enjoyment or a lemon. Here are some key considerations to help you determine the right neighborhood for you:
Buying a home is a significant investment, so it’s important you find the right location.
Working out What you Want
So you’ve decided that low interest rates make it the perfect time to purchase your first home or upgrade to something a little bigger.
Before you embark on your house search it’s essential that you take the time to consider where you want to live. Why? Because your home is a big investment and location can make all the difference between finding a dream home that will give you years of enjoyment or a lemon.
Here are some key considerations to help you determine the right neighborhood for you.
Pace of Life
If you’re young and looking for proximity to entertainment you may want to choose inner city. If the quieter life is more your cup of tea, look for city fringe suburbs or find out where some quieter pockets can be found in the city. Don’t be tempted into believing an acre block or inner city apartment will work for you if you know it does not suit the lifestyle you lead.
If you’ve got family, or are expecting to soon, it’s important to think about proximity to schools, child care and sporting facilities as well as transportation.
Find out what job opportunities exist in different locations and be sure to choose a location where the economy is growing and employment won’t be a problem. If you’re currently in work, make sure the commute in each day is not too draining or time consuming.
To Stay or to Sell
If you’re buying with intentions of settling in be sure to choose an area you really like that fits your lifestyle for the here and now but will also cater in the years ahead as your circumstances change. If on the other hand capital growth and re-sell are part of your plan you may be better off going head over heart and choosing a location that offers strong growth potential.
Remember, no neighborhood selection should come without a lot of research. Look into crime rates and be sure to find out if any big developments are in the pipeline in your area.
Is This the Peak for Sellers?
The national buyer/seller index shows that the national property market is strongly in favor of sellers with a record result being recorded for Q3 2019. The latest result shows the index has recorded the ninth consecutive quarter of favorable conditions for sellers.
What Does the Q3 Result Mean?
The Q3 2019 index result shows that demand from buyers is currently outstripping listings faster than any time on record. This is because a number of large capital city markets are continuing to record low levels of new listings at a time when strong buyer demand is in place. This has led to a situation where properties are selling faster than can be replenished by sellers.
Low Interest Rates has Lifted Affordability and Buyer Demand
The lack of listings has occurred in many instances because up-graders, and those looking to sell, prefer to purchase a property before they list their current home for sale. This has been intensified by rising levels of buyer demand. This demand has been driven by increased affordability from falling interest rates which has seen investors and owner occupiers compete for the limited amount of stock of on the market.
Market Favor Dependent on Local Economy
Despite the national index being strongly in favor of sellers, this may not be the case for local markets across the country. It is possible to find markets that are balanced, or in favor of buyers, with the strength and performance of state, regional and local economies deciding the index outcome. This can be seen from the state based index table which shows that 5 out 8 markets are in favor of sellers while 2 are balanced and 1 market is in favor of buyers
Is This the Peak for Sellers?
The large growth in favor of sellers has led to the question of when will the index swing back towards a more balanced, or buyers, market? By overlaying a lead indicator we can evaluate where in the cycle we are currently sitting and forecast any future swing. Overlaying ABS Housing Finance data (buyer demand) onto the index chart we can see that it leads a swing in the index by approximately one quarter. By analyzing the finance data we can see that after strong growth over recent years, the “rate” of growth in finance commitments has begun to slow. It is expected that, as a result of this slowdown, the record Q3 2019 index result may also be the peak, in terms of ‘favorability’, for a sellers.