Despite what the media would have you believe it isn’t all doom and gloom in Australia. When you take a closer look at the latest figures, the outlook is actually quite positive for the property market.

Increase in home loan commitments

Recent figures released by the Australian Bureau of Statistics (ABS) show the value of new loan commitments for housing rose sharply in August, up 12.6%. The value of owner occupier home loan commitments was $16.3 billion in August, the highest value in the history of the series. August’s 13.6% increase in the value of owner occupier home loan commitments is the largest month-on-month rise in the history of the series, eclipsing the previous record of 10.7% set in July.

Furthermore, the number of owner occupier first home buyer loan commitments rose 17.7% to reach the highest level since October 2009. New South Wales, along with Victoria and Queensland saw the largest increases in the value of new loan commitments.

Not everyone is struggling

There are indications that we are pushing through this Covid induced recession. While still high in comparison to other years, the unemployment rate decreased in August to 6.8% according to the ABS, the lowest jobless rate since April. But instead of focusing on the number of unemployed, let’s look employment figures; the ABS reported the number of employed people increased by 111,000 to 12,583,400.

Digging a bit deeper, the figures show full-time employment went up by 36,200 to 8,584,500, and part-time employment advanced by 74,800 to 3,998,900.

Regional house prices on the rise

CoreLogic’s September home value index results showed a 0.1% fall in dwelling values nationally, but the regional markets have continued to out-perform relative to the capital cities. According to the latest figures from CoreLogic, in September, every ‘rest of state’ region, except Western Australia, recorded a lift in housing values.

Regional NSW saw a lift of 0.5% in last month, 1.5% in the past three months, and when looking at the past 12 months, a very healthy 5.5% increase in house values.

Indeed, looking at our year on year sales figures for May to August 2020, we’ve found our figures have been stronger this year than in the same months last year.

Extra help

There is government support for first home buyers. First home buyers can get a $10,000 grant towards building a new home up to $750,000 and purchasing a new home up to $600,000 under the ‘fair go for first home buyers’ programme. They also benefit from:

• No stamp duty on all homes up to $650,000
• Stamp duty relief for homes up to $800,000
• No insurance duty on lenders’ mortgage insurance.
• There is also the Homebuilder grant where First home Buyers and subsequent home buyers can receive $25,000 for purchasing or building a new home. Visit treasury.gov.au/coronavirus/homebuilder

For more information on government support for first home buyers, visit www.nsw.gov.au

Furthermore, the Government is positively aiming to stimulate regional economies in the form of pumping more money into infrastructure spending and support for regional tourism to attract domestic visits. As well as improving employment prospects in the tourism industry, it may well further generate more interest in our area as a place to live, given that more people can now work from home; Newcastle and the surrounds definitely offer a desirable, and more affordable lifestyle.

In a nutshell, there are many parts of our economy doing very well, more people are earning, and with interest rates still at a record low, more are having the confidence to make financial commitments to a residential home loan.

So, if you are thinking of up or downsizing, or simply want to live in a different type of house or location, now is as good a time as any to make that move.

Why not test the market? Give us a call and we’ll come round and give you a free, independent and non-obligatory quote.

We can also suggest low-cost ways to improve your property; having been in the business for 40 plus years, we’ve helped thousands of people add value to their properties and are constantly achieving great results for our clients.

Call in and see us in the Cardiff office or give us a call on 02 4954 8833. Or send us an email to: mail@apnewcastle.com.au – we’d love to hear from you.

And don’t forget to check out our Facebook page for handy tips on selling your property or what to look for when buying a property.