As home loan brokers who have been around Rockingham since 1999, we have been through some incredible market swings. We have seen Rockingham evolve from a small fishing town to a sea change destination to a burgeoning city. Though the changes sound different, there are some patterns that seem to be constant.
One of those is that property values don’t stay the same for long. Imagine if you had purchased a home here in 1999, when Rockingham was still a small town. Over the years, we have heard a lot of homebuyers lament that they wish they had bought earlier. For example, if you had bought the median home in April 2013, you would have paid $411,500. By December of 2014, that price had increased to $466,100. That is a difference of $54,400.
Our point is that if you are thinking of buying a home in the Rockingham area, every month you delay can cost you money. The market has been “flat” for a few months, but a recent report may signal a coming change in the market.
Genworth Homebuyer Confidence Index
The newest edition of the Genworth Homebuyer Confidence Index reports that homebuyer confidence is now at an all-time high. National confidence has increased by 1.1%, but in WA it has increased by 4.5% from a score of 97.2 to 101.6 on their scale. In September 2014, 41% of Australians thought it was a good time to buy a home. As of March 2015, that number has risen to 52%.
What it Means to You
When confidence is high, more people buy. As more people buy, prices begin to rise again. Nobody can honestly say they know where the market is going, but we can certainly make an educated guess. In five to ten years, people may be wishing they had bought in 2015 while interest rates were low and prices were more affordable.
Call Smartline Rockingham to learn more: (08) 9527 1800.