What Experts are Saying About Buying Houses Right Now
Posted by Tristan Angelini on 20 September 2022
Getting into the property industry has been a dream for so many people. Not only is the investment lucrative, but it's also stable. However, the main issue right now about property investment is its unpredictability. One day it's a good time to buy; the next day, it's not.
Experts are currently having mixed views about buying property now. While some are saying that there is a very good chance for aspiring property buyers to finally get into the market, they also worry that there are not enough good buying opportunities.
According to some experts, the rising cost of home loans cancelled out any benefits that investors supposedly would have brought by the property price falls. Experts are saying that housing affordability will take some time before it improves. Still, a good number of industry figures believe that potential home buyers have more properties to choose from right now, and at the same time, there is less competition to worry about.
Housing interest has dipped to historic lows but is now starting to edge up. However, according to the Westpac-Melbourne Institute Index of Consumer Sentiment, buyers are still apprehensive about investing even with the improvement in sentiment.
The Time to Buy a Dwelling Index – a survey done on a monthly basis via phone showed that interest has improved with an increase of 2.9 percent over the past month. However, if we compare it to its peak last November 2020, there has been a 39 percent decrease, indicating that it is still in pessimistic territory.
Consumers also expect house prices to rise over the next 12 months. There has also been an increase in The House Price Expectation Index by 3.6 percent, resulting in 100.6 points.
Commonwealth Bank released results in their latest Household Spending Intentions Index. The Index showed modest improvement in terms of consumer confidence in housing. There was a slight effect on consumer confidence due to the interest rate hikes. These continuous hikes hampered their buying power in the market – the ability to borrow was constrained. Thus, huge improvements will only be seen once they feel comfortable with the interest rate. There's always that worry that if they go higher, they may also fall, so once they see stability, that's the only time they would see some improvements in affordability.
So, what do experts recommend?
There has been a limited supply of homes for sale at the moment. While it has helped the auction clearance, there’s still a possibility that it will weaken in the next few months. Consumers and investors feel frustrated about the lack of properties to look at. Other experts are not convinced that a better market awaits buyers in the near future. If the prices continue to fall, homeowners will definitely hold on to their properties longer, reducing the number of choices in the market.
Right now, it's much more critical for buyers to purchase a property that can be considered good quality than picking something from the bottom of the market. Ultimately, choosing the right assets matters more than trying to purchase them at what seems to be the right time.