More Homeowners Planning To Sell: Westpac
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More Homeowners Planning To Sell: Westpac

Latest figures indicate a rise in Aussies thinking about selling.

By Terry Christodoulou
Tue, Jun 29, 2021 10:02amGrey Clock < 1 min

More Australian’s are thinking of selling their homes according to the latest research by Westpac.

Nearly four in ten (39%) homeowners are planning to list in the next five years – an increase of 9% since November 2020.

The report found a number of homeowners are looking to downsize, with more than a quarter (26%) looking for a smaller property.

Westpac’s Managing Director of Mortgages Anthony Hughes said the findings could be promising news for buyers.

“In welcome news for buyers, the report also found more people are now thinking about selling. This is largely being driven by confidence in getting a good return on their home, as well as an increasing desire to live in a new area as people seek more living space.

“While the report found houses are most in demand, units and apartments still remain a popular option – particularly among younger buyers who are more likely to seek the convenience and access to local cafes, restaurants, and bars, as well as downsizers who might be seeking a coastal lifestyle,” said Mr Hughes.

The report found 71% of first home buyers are seeking a house or townhouse and 62% want a property with at least three bedrooms.

Despite a slight decrease recorded in the number of Australians planning to buy a first home, competition with other buyers remains a top challenge (43%) with 29% citing a lack of listed options as a barrier to achieving homeownership – a sentiment that’s increased by 10 percentage points in the last three months.

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Amid looming rate rises, there are reasons to be cheerful as mortgage holders head into 2023

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Mortgage holders should brace themselves for more pain as the Reserve Bank of Australia board prepares to meet tomorrow for the first time this year.

Most economists and the major banks are predicting a rise of 25 basis points will be announced, although the Commonwealth Bank suggests that the RBA may take the unusual step of a 40 basis point rise to bring the interest rate up to a more conventional 3.5 percent. This would allow the RBA to step back from further rate rises for the next few months as it assesses the impact of tightening monetary policy on the economy.

The decision by the RBA board to make consecutive rate rises since April last year is an attempt to wrestle inflation down to a more manageable 3 or 4 percent. The Australian Bureau of Statistics reports that the inflation rate rose to 7.8 percent over the December quarter, the highest it has been since 1990, reflected in higher prices for food, fuel and construction.

Higher interest rates have coincided with falling home values, which Ray White chief economist Nerida Conisbee says are down 6.1 percent in capital cities since peaking in March 2022. The pain has been greatest in Sydney, where prices have dropped 10.8 percent since February last year. Melbourne and Canberra recorded similar, albeit smaller falls, while capitals like Adelaide, which saw property prices fall 1.8 percent, are less affected.

Although prices may continue to decline, Ms Conisbee (below) said there are signs the pace is slowing and that inflation has peaked.

“December inflation came in at 7.8 per cent with construction, travel and electricity costs being the biggest drivers. It is likely that we are now at peak,” Ms Conisbee said. 

“Many of the drivers of high prices are starting to be resolved. Shipping costs are now down almost 90 per cent from their October 2021 peak (as measured by the Baltic Dry Index), while crude oil prices have almost halved from March 2022. China is back open and international migration has started up again. 

“Even construction costs look like they are close to plateau. Importantly, US inflation has pulled back from its peak of 9.1 per cent in June to 6.5 per cent in December, with many of the drivers of inflation in this country similar to Australia.”

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