What to ex­pect in the spring prop­erty mar­ket

Shepparton News - SN Local Real Estate - - NEWS -

The post-boom mar­ket might have cooled slightly, but there is still plenty of life left in the prop­erty mar­ket this spring.

The shift from a seller’s to a buyer’s mar­ket means first home buy­ers who had all but given up hope of home own­er­ship are now faced with the best op­por­tu­nity they’ve had in years to get onto the prop­erty lad­der.

In­dus­try crack­downs and re­duced in­vestor ac­tiv­ity re­sulted in a frosty winter mar­ket, marred by passed-in auc­tions and a prop­erty price dip, but spring is set to be the sea­son of the first home buyer.

Toby Balazs, chief ex­ec­u­tive of­fi­cer of realestat­e­view.com.au, is op­ti­mistic about the out­look for the rest of the year.

“Spring is his­tor­i­cally the busiest pe­riod for prop­erty,” he said.

“With the stamp duty con­ces­sions and first home buyer in­cen­tives that were in­tro­duced last year, we can ex­pect a higher pro­por­tion of first home buy­ers to en­ter the mar­ket.”

Many ex­perts agree that it will be an in­crease in first home buyer ac­tiv­ity that will shield the mar­ket from a crash, par­tic­u­larly in Mel­bourne and Syd­ney.

Ho­bart is ex­pected to con­tinue en­joy­ing strong growth, fu­elled in part by in­ter­state in­vestors seek­ing af­ford­able op­tions out­side their home towns, while Perth, Bris­bane and Ade­laide are fore­cast to achieve mod­est gains.

First home buy­ers in Vic­to­ria are rel­ish­ing the ben­e­fits af­forded to them by the Vic­to­rian Gov­ern­ment’s Homes for Vic­to­ri­ans pack­age, in­tro­duced last year.

The suite of mea­sures in­cluded a stamp duty ex­emp­tion for first home buy­ers pur­chas­ing prop­er­ties for less than $600,000, with fur­ther con­ces­sions avail­able on homes up to $750,000 in value, ap­plied on a slid­ing scale.

Fewer in­vestors in the mix means less com­pe­ti­tion for auc­tion debu­tantes, which should make the bid­ding war seem a lit­tle less in­tim­i­dat­ing, and many own­ers are wind­ing back their ex­ces­sive price ex­pec­ta­tions in the face of fall­ing clear­ance rates —all of which makes for a dream come true for first home buy­ers. For those look­ing to buy in re­gional Vic­to­ria, the gov­ern­ment is of­fer­ing a boost to the tune of $20,000, dou­bling the first home buy­ers grant for new builds. Young first home buy­ers are flock­ing to re­gional towns and build­ing their dream home on a spa­cious block for a frac­tion of what they could ex­pect to pay, even on the out­skirts of the cap­i­tal.

First home buyer loan ap­provals are al­ready on the rise, and agents are re­port­ing a strong in­flux of in­quiries from prospec­tive first-time buy­ers.

“Al­ready dur­ing the first two weeks of spring, vis­i­tors to our ‘buy’ sec­tion were up 25 per cent com­pared to the same pe­riod in June, and to­tal vis­i­tors were up 18 per cent site-wide,” Mr Balazs said.

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