The Australian housing market hit an all-time low in sales in 2017. The housing market reached rock bottom as prices faltered, people stopped buying houses, and young people simply did not have enough money to buy homes. However, the housing market is recovering in 2020. You might visit My Money House for information on loan or credit guidance. Plus, you might wonder where you should go to find a house in this recovering market.
Melbourne And Sydney Are Recovering
Melbourne and Sydney are the two largest cities in Australia, and they have shown signs of recovery. Sydney is a massive city with a financial district, the Opera House, tourism, and commerce. Sydney has a large shipping industry, a food community that opens new restaurants all the time, and serves as a terminal for shipments that move up and down the eastern coast of Australia.
Melbourne is a cosmopolitan city that has long been a center of fashion, glamour, and food. Melbourne hosts the Australian Grand Prix and the Australian Open. Plus, this city is a popular location for artists and tourists. These two cities have large economies that can easily rebound from any housing trouble. However, they are the exception instead of the rule.
How Much Will Housing Prices Rise?
When housing prices rise, that means that buyers are ready to buy. Buyers who are bringing money to the table to buy homes allow sellers to get good prices. Sellers will continue to raise their prices because of competition in the marketplace, and buyers will need to make strong bids when buying homes.
Prices in Melbourne and Sydney are expected to rise somewhere between 16% and 17% in the next year. This is a massive increase that might help bolster communities around both Sydney and Melbourne. There is no guarantee that suburbs will experience a housing boom, but the numbers are promising.
How Did Credit Availability Change In Australia?
Credit availability was restricted in Australia in 2017 when the government became concerned about faulty lending practices. The American economy once caused a worldwide recession because of poor lending practices. Australia did not want to experience a crisis like the one felt in America in 2008. However, the Australian government reversed those restrictions in 2019, and the economy has begun to turn around.
More people can get loans from a place like My Money House, and those people can buy homes quickly because they have pre-qualification letters ready to use. These borrowers can make strong offers to sellers, and the process will continue to accelerate until prices reach a point that they cannot be sustained.
Economists do not know how long prices in the Australian housing market can be sustained, but the economy seems to be recovering. People who live in Sydney and Melbourne are seeing a change in housing prices, credit availability, and housing sales. However, buyers might want to buy their homes now so that they do not pay more money in the future. There is no guarantee that a buyer can save money by waiting out the housing market’s price increases.