Australian real estate experts are predicting that 2014 will be an excellent year for anyone interesting in buying a home. The market has been rebounding since 2011, and getting approved for a home loan with a decent interest rate should not be a problem for anyone with a reasonable credit rating. Following are five reasons why this year is going to be the year to buy for many prospective homeowners.
1. A record number of properties are for sale.
Although current homeowners are upgrading and investors are delving into the property market, activity from new homeowners is still low. This has put a record number of homes up for sale, and competition translates into affordable prices. When housing is affordable, a greater percentage of people will be approved for mortgages.
2. The property bubble everyone has been talking about does not exist.
Some investment strategists have said that Australia is in a housing bubble that will soon burst, but the affordability of homes and the low interest rates can be explained by the fall in property values that occurred from 2010 to 2012. There is no bubble. The market is only in a state of recovery, which is the best time to take out a loan.
3. Housing has not been more affordable for several years.
Property values are lower than they have been in recent years, household income is steadily rising and interest rates are down. All of these factors have made homes more affordable than they have been in several years. Naysayers have said that properties are presently overvalued, but this is only because wages have not kept up with home values in the last two decades.
4. The market is in a cyclical upturn.
The housing market has recently entered a cyclical upswing that is expected to continue through 2014 and into 2015. Interest rates are expected to remain low, and consumer confidence is currently very high because values are increasing at a rate of $1,000 per week for some properties. When values increase like this, lenders find it easier to originate new home loans.
5. Property values will continue to increase.
Although no one can predict with 100 percent accuracy how long property values will continue to increase, a downturn is not expected in 2014. Investors are delving headfirst into the market, and prospective homeowners would do well to follow suit. For those who only want homes of their own, there is no better time to take out a loan.