At first glance, the housing market in Australia offers some uncertainty with low interest rates on one end of things and economic ambiguity in terms of income, employment and overall market growth on the other end. While it may seem counterintuitive, it just might be the right time for a home loan. Rockingham residents as well as those in Kwinana, Cockburn and elsewhere in the area are looking at lower home prices right now, the lowest in three years.
What’s in the Immediate Future?
You can likely expect the interest rates to hold steady for a while longer or even drop a bit more, based on the current global financial situation. However, in 2013, many experts agree that the economy will pick up again and with it, interest rates.
Supply and demand will ultimately prod along the real estate markets. As the population in the area rises, so will the demand for housing such as homes or rental properties. And given that there are fewer properties for rent at the moment, the right option for housing is to buy.
While home values have dropped, so have the market prices for them. This is good news for investors looking to purchase homes for future rentals as well as new home buyers. Right now, your money will go further than it will in the coming months. For the right advice on handling the current market, talk with expert mortgage brokers. Kwinana, Cockburn and other local area residents like you can better understand how lending works in the current Australian economy with the help of a professional.
Other Factors in Play
The immediate Australian local economy may be in a slight slump with lower property values; however, global dynamics also affect it as well. Several European nations are seeking financial reconstruction while China, a big buyer of Australian resources, has slowed down its purchases. Interest rates are likely to be dropped again by the Reserve Bank to promote and bolster consumer and business spending.
There may also be other unpredictable factors at play that can cause uncertainty in the economy. However, if you are in the market for a new income property or a home, right now could be the time to act while interest rates are down. The economy doesn’t immediately go into an upswing; there is a period of time when the economy stabilises, when prices level out before they rise, along with an upturn. It is during this time when you should take advantage and look into a home loan.
Cockburn, Kwinana and other residents in the area like you can get the right advice regarding the economy and lending options through our brokers here at Smartline Mortgage Brokers Rockingham. We can help you interpret the local housing indexes and navigate through all the channels that lenders can put you through when obtaining a home loan.