House prices have inflated by a whopping 18.4% over the year to June, 2021 the latest Real Estate Institute of Australia’s (REIA), Real Estate Market Facts has found. (The report records all sales that have settled).

REIA President, Adrian Kelly said that over the June quarter, the weighted average capital city median price increased by 4.4% for houses to record $913,946 and by 2.9% for other dwellings reaching $632,889.

“At $1,410,133, Sydney’s median house price continues to be the highest amongst the capital cities, 54.3% higher than the national average. At $515,000 Perth has the lowest median house price across Australian capital cities, 43.7% lower than the national average.

“At $786,175, Sydney’s median other dwelling price continues to be the highest amongst the capital cities, 22.3% higher than the national average.

“At $400,000 Perth has the lowest median house price across Australian capital cities, 37.8% lower than the national average. Over the 12 months to the June quarter, the weighted average capital city median price for other dwellings increased by 8.6%,” he said.

Mr Kelly said major regional centers and coastal areas continued to pique the interest of those escaping the city, Australians moving interstate and strong interest from repatriating Australians resulting in premiums in home sales.

According to the report, significant regional price moments across the year include: Darwin up 21.5%, Broome up 22%, Bendigo up 14.3%, Launceston up 22% with both Wollongong (23.1%) and Newcastle (21.9%) recording major increases. In regional South Australia, median house prices increased in Mount Gambier (12.8%) and Port Lincoln (17.0%) over the year. All regional Queensland zones increased over the past year: the Gold Coast (21.4%), Sunshine Coast (27.0%), Townsville (10.1%) and Cairns (13.2%).

Mr Kelly said the weighted average median rent for 3 bedroom houses in the eight capital cities increased to $453 per week, a quarterly increase of 0.4%. The median rent for 3 bedroom houses increased in Perth, Canberra, Hobart and Darwin but remained stable in all other capital cities.

“Other dwelling rents During the quarter, the median rent for 2 bedroom other dwellings increased in Adelaide, Perth and Darwin, remained stable in Sydney and Hobart, but decreased in the other capital cities. Darwin had the largest increase over the quarter (12.4%),” he said.

The RBA’s latest Statement on Monetary Policy released on Friday noted housing prices have been rising in all major markets, after declining during the initial COVID outbreak last year.

“Strong price growth continued through July, including in Sydney, such that national housing prices were around 15% higher than the start of the year,” the RBA said.

The RBA also noted growth in housing credit has picked up and demand for finance from investors has also increased recently, on top of the strong demand from first-home buyers and existing owner occupiers.

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Economists at three of the four big banks have just lifted their forecasts for Australian dwelling prices in 2021 after a stronger-than-expected surge in the first half of the year, with price growth expected to slow down in 2022.

Commonwealth Bank of Australia economists now expect national prices to jump by 20% this year, while National Australia Bank and Westpac economists forecast gains of 18.5% and 18%, respectively.

Mr Ryan said many sellers are holding off listing on the market because they want to sell their properties under optimum selling conditions, and sales had started to fall in Sydney.

“The market in Sydney is going to go into a bit of a dormant state,” Mr Ryan said.

“Some properties will sell and I don’t think there will be bargain conditions. Sellers know that the market is hot.

“Prices are likely to hold up, you’ll get most sales being delayed and everyone will kind of wait out the winter and sell afterwards.”

Buyer Facts – The Process

Pre – Inspection

Buying a home, can be one of the most stressful situations that you and your family can experience. For most people, their biggest asset, so you need to ensure that the place you’ll call ‘home’ will tick all the boxes for both you and your family. To ensure nothing gets missed, start by making a list of all your requirements. Prioritize the list by importance and be sure to differentiate between your needs and wants.

Inspecting Properties

As it can be such a lengthy process until your find the perfect home, you may end up viewing up to 10 homes in a single week so the information can become overwhelming in trying to differentiate between homes as they’ll all have such similar attributes, such as number of bedroom, garages etc. After each inspection take a few minutes in the car to write down some of the key advantages and disadvantages of each property inspected. At the end of the week, compare this to your list of requirements and you’ll gradually start eliminating the homes which just simply, don’t make the cut.

Be flexible and objective and try to avoid preconceived ideas that may cause you to miss better ideas highlighted in the home. Be realistic when inspecting homes. Rarely will one home measure up completely. Take notice of the homes, which meet most of your needs.

Don’t rush inspections and don’t attempt too many inspections in one day – it is easy to become confused. Be prepared to make a second visit to a home. If you are buying with someone else, both parties should inspect the property together. Each partner may have slightly different requirements in a home and it is important that you both agree about the suitability of a home. Once you have found an acceptable home, have a look around the neighbourhood. Check the area for community facilities and other types of surrounding properties ‘ for example, industrial properties, which may cause both noise and air pollution ‘ and ask your agent for further information on the area. If you are purchasing a property as a rental investment, then prior to submitting an offer, it would be a good idea to have the property manager, to inspect the property with you. The property manager has extensive knowledge of rental properties and has a keen eye for detail and the rent that should be obtained from the property.

The property manager will be able to suggest what improvements/repairs should be or will have to be attended to prior to renting the property.

Location, Style and Size

In choosing the right home there are several factors you need to consider, including: Location: preferred suburbs access to schools, work, amenities, style and size along with your specific needs.

In deciding on a location, your personal Platinum sales representatives know areas extremely well and are also aware of any proposed changes in the area that are likely to affect your investment. However, you should consider factors such as distance from your place of work, nearby educational facilities, availability of recreational facilities, the local town-planning regulations and the development potential of the land.

When determining the style and size of your home, consider your basic needs and discuss these with the agent, for example:

* Vehicle requirements, such as Garage spaces or Carports.

* An extensive garden or easy care surrounds

* Family living areas: games room, bedrooms etc.

* Inside and outside entertaining areas

* Capacity to extend, allowing your family potential room to grow in comfort.

Although the sales representative can relate the matters relevant to the sale, prior to submitting an offer you should make your own enquiries to satisfy yourself on the suitability of the property.

Finance

One of the most important factors, If you require a loan to enable the purchase of a home, then your capacity to meet home loan repayments will determine the price range in which you can consider buying. It is strongly recommended to establish your buying capacity prior to searching for a home to reduce any uneccasarry disappointment or strain on repayments.

Platinum Real Estate’s highly recommended financial service assistants can help you in finding a loan which is right for you.

Offer and Acceptance – The Process

Agents are normally paid by the seller to obtain a fair and reasonable price and are required to act in the interests of the seller. The agent is under no obligation to advise you if another buyer offers neither a higher price nor the value of that offer. The agent must simply present your offer when it is received.

If you are genuinely keen on the property you have selected, then it is in your best interest to make your best offer.

Carefully consider the feedback from your personal sales representative. For example, if the agent informs you that the seller is not willing to consider offers below a certain price, then by making a low offer, you may risk the chance of loosing the perfect property.

The Offer and Acceptance Contract

The details of your offer are expressed in the Contract of Sale. This is a legally binding contract that sets down the terms and conditions under which the purchase and sale will be completed.

After you have signed the offer the agent then forwards the offer to the seller. The seller may not agree to your price and/or your conditions. The seller may make a counter offer or may totally reject your offer.

The contract is not legally binding until the Contract for Sale is signed by all parties who are signatories to the contract, and communication of its acceptance is conveyed to all parties who are signatories to the contract.

Pre-Settlement Inspection

The seller shall give the purchaser reasonable opportunity to inspect the property within seven days prior to settlement. The purchaser would use this opportunity to determine if any special conditions have been satisfied and to determine if the property is in the same state and condition as inspected by the purchaser on or immediately before the date of the contract.

Settlement

At settlement, the balance of the purchase price is paid to the seller, any outstanding mortgages discharged, new mortgages lodged, and then the purchaser becomes the legal owner of the property. This is moment where we a honoured to present you the keys to your new home.

This all may seem like alot of information to take in at once, but please don’t be disheartened. Buying a home is overall a wonderful experience as its a new adventure where new memories begin to grow. Rest Assured, All the staff at Platinum Real estate will be there to assist you every step of they way.

With Best Wishes

-Elvira & Team