Well, we’re just a couple of weeks into the New Year, and one thing we can all be certain of is that the Brisbane housing market is still firing on all cylinders.
Unlike other capital housing markets, Brisbane is defying the predicted downturns with significant growth still being experienced mainly due to its great affordability when compared to other major urban hubs like Melbourne and Sydney.
One of the most exciting bits of news that’s come out is that housing supply is up by 43.8% in Brisbane City. More and more home owners are putting their houses on the market to try and take advantage of the incredible growth and maximise their sales results.
What does this mean for you, as a first home buyer?
It means that there are far more listings out there (despite still being at historic lows), which in turn drives down the hyper-competition that is leading to inflated sales results. It also gives you more choice, and there is likely more chance of you finding something aligned to your budget and brief.
As more and more stock comes onto the market, there will be far more certainty and consistency in pricing which can play into your hands if you are strategic about it.
So, what should you do?
Well, our first piece of advice is not to wait for the market to cool down – if you think prices are going to decrease dramatically, you’re in for a rude shock – prices, especially in Brisbane are set to continue rising (albeit not at the frantic rate they have over the past 12-months or so).
Say prices increase by 10% this year (and not 27% like last year), that still means you’ll be paying an extra $75,700 if you look at Brisbane’s median house price.
Also, with interest rates set to rise, and affordability criteria tightening, your borrowing capacity could be impacted significantly which means settling for something that might be outside of your brief.
Start researching and apply for finance!
Start looking now and research your ideal suburbs, price points, and desires. Start talking to agents and building some intelligence on what you’re looking for.
While you’re doing this, if you haven’t already, start talking to a mortgage broker! You might be ready to make a move now and apply for finance, however, there are plenty of things you might need to do if you’re to successfully apply for pre-approved finance.
Depending on your current situation, finance approval might be quick, or it could be incredibly slow. It’s just important you do it before you even consider making any offers on houses or taking your house hunt to the next level. Putting offers on houses prior to attaining this is fraught with risk, and with many other buyers offering 7-day finance terms, you’re likely not to have any chance of being competitive anyway.
Getting your finance sorted as soon as possible gives you the flexibility to take advantage of the stock levels increasing, and maybe securing a property within your realms of affordability.
Now is the time to buy!
Do not delay – if you have been planning your first home purchase in Brisbane (or outlying suburbs), delaying might set you back significantly if prices continue to run the way they are.
If you’d like to discuss this article in more detail, get in touch with one of our MAW Money Home Lending Specialists. We’ll be able to assess your situation and offer financing solutions aligned to your unique needs and requirements. Importantly, we’ll try our best to help you take advantage of the increased stock levels and securing your first home.