Latest News
FEBRUARY 2022 SALES UPDATE
over 3 years ago
FEBRUARY 2022 SALES UPDATE
Share

 


REGIONAL PRICES SURGE TROUNCES CAPITALS


CoreLogic’s JANUARY Home Value Index reveals that since March 2020, housing values across regional Australia have increased by 32%, compared to a 20% lift in values across the combined capitals.

This has been substantially driven by the pandemic inspired flight from cities as more flexible work policies combine with a desire for different lifestyles.  Another contributing factor is that inventory remains low across regional Australia, with advertised stock levels finishing the year 35.9% below the five-year average. By comparison, housing stock in capital cities is only 14.2% below the five-year average.

Across January, regional values rose 2.2%, the highest rate in nine months, but Queensland showed the nation a clean set of heels by rising 2.4%. It’s important to remind our readers though that over the past year, the strongest regional markets have been in New South Wales (29.8%) and Tasmania (29.5%).

Monthly change in capital city home values

                                                                 MONTHLY                               ANNUAL

Sydney                                                      p 0.3%                                       p 25.3%

Melbourne                                              q 0.1%                                       p 15.1%

Brisbane                                                   p 2.9%                                      p 27.4%

Adelaide                                                  p 2.6%                                      p 23.2%

Perth                                                          p 0.4%                                      p 13.1%

Hobart                                                       p 1%                                           p 28.1%

Darwin                                                       p 0.6%                                      p 14.7%

Canberra                                                  p 0.9%                                      p 24.9%

 

National                                                   p 1%                                           p 22.1%

 

A two-speed market has emerged

Housing values rose 1% in December, which was slower than November’s 1.3% rise. This was a continuation of the slowing rate of growth First National Real Estate has been observing since March last year.

However, whereas Brisbane prices surged by 2.9%, in Melbourne prices experienced a 0.1% fall. That was the first fall in prices since October 2020, after Melbourne had just completed a second lockdown lasting 111 days.

Brisbane and Adelaide go their way

Brisbane and Adelaide, along with Regional Queensland, have turned out to be the only broad regions where there’s no sign of growth rates slowing down, yet. For these three, the monthly rate of growth reached a new cyclical high in December.

Primarily, these regions are more affordable than the other capitals and strong interstate migration continues to drive demand. Additionally, the trend of properties advertised for sale remains well below average in these markets.

Melbourne and Sydney cooling

Momentum has slowed sharply in the nation’s two biggest markets – Sydney and Melbourne. A big lift in newly advertised listings through December was the key factor in this turnaround, but affordability constraints are becoming an issue. Both cities recorded their softest monthly reading since October 2020.

The upper quartile leads the slowdown

As is always to be expected, the upper quartile leads with the greatest gains or losses. Across the combined capitals, premium property values were up 2.6% in the December quarter compared to the lower quartile and broad middle market rising 3.7%.

This would suggest, as is more broadly though, that after such a strong growth cycle the market is now entering a moderating phase, which may lead to a reduction in prices in some markets throughout 2023.

 


DO TREES ADD VALUE TO YOUR HOME?


Trees offer shade, shelter, aesthetic appeal and energy savings; they can also increase the overall value of your property by anything from $1,000 to $10,000 per tree.

Tree choice and maturity will determine just how much value can be contributed but planting early on your means that your investment grows steadily through the years as the trees grow.

Featuring many quality well-positioned trees can be a real boost to your property but it’s important to consider the types of trees you will put in – specifically their growing habits and the shape they will form as they mature. Your best option is to take your map and your list of ideas to your local nursery for advice on what kind of plants would best suit your property for the purposes you require. Some may take some time to establish themselves, so what you choose will also be determined by when you plan to sell. You might find your nursery has better suggestions for mature trees or hedges, that is already at the height or size you require and can be planted to immediately provide the solution you need. 

A few hundred dollars at the nursery can turn into thousands of dollars of value to your property if taken care of properly - so make sure you mulch, water, weed and feed your trees as advised and pay regular attention to them to spot and control pests or diseases early if they appear. 

 


5 TIPS FOR BUYING PROPERTY WITH FRIENDS OR RELATIVES


After a couple of tough years, many people are finding themselves alone and financially unable to invest in property to secure a home for their future.

Finding yourself worse off than you could have anticipated is a tough blow, especially when coupled with unexpected hardships such as job loss, separation or divorce, or suddenly being widowed, so you may feel you are facing a future of uncertainty.

Buying a property by yourself is expensive, so why not recruit a close friend or relative and make that journey together?

1. Understand the shared financial commitment

Buying a property is a big financial commitment, not only because of the ongoing monthly repayments, but also the responsibility for the regular expenses involved in running and maintaining the property. A decision should not be based on emotion but cold hard numbers. Don’t let your feelings for the person cloud your thinking. Agree to get independent professional advice from lawyers, accountants and real estate agents whenever necessary.

2. Be honest about money

Being as honest and open as possible about each of your expenses, spending, savings and debts is crucial. You both need a true picture of each of your financial strengths and weaknesses. Discuss what your current budgets are and how they will have to change to manage the new expenses you will both be committing to. Agreeing to get credit checks, reviewing each other’s tax returns for the past few years and looking at each other’s current income and expenses is a sensible approach that informs both of you - to ensure neither of you is getting in over their head.

3. Decide on clear terms of co-ownership

There are a couple of options to choose from in terms of the ownership structure. ‘Tenants in Common’ gives each party a share in the ownership of 

the property, while ‘Joint Tenants’ means the two of you together own the property as one entity, without individual shares or rights of ownership. There are great advantages to buying properties with a friend or relative, as long as you both approach it sensibly. Once you have chosen the most suitable co-ownership structure for you both, you should get a co-ownership agreement drawn up by a professional. 

4. Invest in legal advice

Getting an expert to advise you may cost a few hundred dollars or so each and that process will be well worth it in the long run, especially if things fall apart. A real estate lawyer can draw up a co-ownership agreement that covers everything as the detail of who does what concerning the management of the property, budgeting for ongoing expenses and necessary precautionary measures to protect you both in the long term.

5. Put management structures in place

The co-ownership agreement can also outline all the other points agreed upon, such as division of expenses (like cleaning and maintenance of the property, rates, utilities etc.), agreement on direct debits for regular payments such as the mortgage, and division of management tasks like who will take care of the garden? Who will go to the body corporate meetings if relevant? Or who coordinates tradesmen for example so the property is regularly maintained, and everything’s kept in good working order. All of these ‘jobs’ need to be considered and allocated in advance to avoid confusion and resentment in the future.

First National Real Estate offers all manner of resources to help you understand the property buying process. Visit www.firstnational.com.au for free advice today.