Locally we know that Mudgee has a relatively strong housing market because of the mining industry’s impact on building, investment, and rental demand. Quite often though, the media reports of Australia’s housing market is not as positive.
Last week, RPdata, one of Australia’s leading authorities on real estate market statistics, reported that the country’s property market is showing signs of stabilising with home values rising 0.2% in March 2012. Whilst this may not seem like much of an improvement, the positive news is that the housing market has not weakened, and our own capital city Sydney, is one of the main growth centres for the current market with home values rising 1.1% in the Jan-Mar 2012 quarter.
Finance approvals have played a major role in the stabilisation, with first home buyers coming back to the real estate market instead of continuing to rent, which we know first hand that weekly rents continue to rise across many parts of Australia, especially in regional towns like Mudgee where the mining industry has had such a significant impact on housing availability.
The RBA has also reported that many mortgage holders are paying off capital on top of their minimum mortgage repayments, which shows that home owners are coping better financially with managing mortgage dept than in recent years.
Overall it appears that Australia’s housing market could start to see a turn around, though when that happens is for the experts to speculate. We’re all for hearing positive news, so we wait in anticipation for more on the movements of the residential housing market – stay tuned!