Australian property prices in the June quarter posted an unexpected 0.5% rise after an upwardly revised 0.1% drop in the March quarter. This is in stark contrast to the results initially predicted by economists, who forecasted a 0.5% decline during the June quarter.
An Unsettled Past
Although some homebuyers felt uncertain about the property market’s outlook, others turned to mortgage brokers.
Rockingham and other local area residents may have been wary, because throughout 2012 up to June, prices for houses actually fell 2.1%, following an upwardly revised 3.5% drop in the year through March.
In fact, the Australian Bureau of Statistics noted that the decline was the fifth quarterly decline in a row in terms of a year-on-year basis for the Australian Bureau of Statistics series, which started in 2003.
However, many economists believe that improvements are ahead, especially since the Australian economy is stronger than many other countries in the world.
So, there is no need for past events to dictate what’s ahead for Australia’s property market.
Reasons for Increased Prices
Although the property market has been on the decline for a prolonged period, the sudden strength in the market could be favourable to providers of home loans. Residents may benefit from recent Reserve Bank rate cuts, too. These cuts have occurred four times since last November and economists say that the cuts played a role in the reason why home prices increased in June and July.
Additionally, economists note that the market sentimentality is still very weak, which is causing some people to delay their plans to meet with a mortgage broker. Cockburn and other local families, as well as others elsewhere in Australia are still demonstrating relatively slow sales activity throughout the market as a whole, and there is a feeling among some economists that rate cuts alone will not be enough to stimulate further sales over a long-term basis. However, New South Wales and Victoria have both instituted incentives for first-time homebuyers, and these likely contributed to the increase noted in some areas.
Brokers Can Give Assistance
Some economists believe that current statistics point to market stabilisation. Furthermore, climbing property prices may assist in building the appeal of companies that offer services as a mortgage broker, Rockingham and local area families, along with those elsewhere in Australia can get the help of these companies to secure a strong loan and negotiate with lenders.
Whatever the future holds, there will always be a need for home loans and residents with the dream of ownership can experience the milestone of homeownership with help from their local mortgage brokers. Contact us – we serve Cockburn, Rockingham, Kwinana, and the surrounding areas.