A new home buyers index done in conjunction with CommBank, reveals potential suburbs across the nation, which offer opportunities for home buyers as property values remain relatively flat.
Along with RP Data, the Commonwealth Bank has today released its fourth Home Buyers Index (HBI) report for the May quarter 2012. The report shows the current Australian real estate market has improved modestly over the past quarter, with housing affordability continuing to develop across a number of Australian suburbs.
This will be interesting news to Australian home buyers who are about to begin looking for a new home or are commencing negotiations on the purchase of a new home, particularly those located in Queensland and Tasmania which are currently experiencing conditions supportive of a buyer’s market. The number of homes advertised for sale within these states currently outweighs consumer demand. Likewise, New South Wales, South Australia, Western Australia and the Northern Territory have all started to open up to a buyer’s market.
Furthermore, particular areas across the country are performing positively for those looking to sell their properties. For example, the Central Highlands region of Victoria is the nation’s best seller’s market with affordable home prices and incentives for new construction clearly resonating with home buyers.
Other notable key findings across Australia were:
- Sydney – almost all suburbs are considered a buyer’s market with the Gosford-Wyong region currently in an extreme buyer’s market
- Melbourne – a softening of the housing market after recording strong buyer activity in 2009 and 2010
- Brisbane – extreme buying conditions across almost half of the region
- Adelaide – the housing market is more balanced than any other area in Australia; and
- Perth – an underperforming housing marke
Clive van Horen, the Bank’s General Manager, Home Loans, said, “In general, the property market across Australia for the May quarter 2012 offers good opportunities for home buyers, however it’s important to remember to do your due diligence, crunch those numbers and ensure you research all options available to you before making the decision to purchase a property”.
Tim Lawless, National Research Director, RP Data, said,“The HBI has seen some subtle improvements; however the housing market still favors the buyer. Our data is showing stock levels remain high across each of the capital cities, so prospective buyers have a good range of housing options to choose from” “A buyers’ market suggests that buyers can continue to drive a hard bargain when they are negotiating on a purchase, particularly in those markets where stock levels are highest.”
Top 10 seller’s markets:
1. Central Highlands (VIC)
2. Pilbara (WA)
3. Loddon (VIC)
4. Canberra (ACT)
5. Central West (QLD)
6. Melbourne (VIC)
7. Darwin (NT)
8. North Western (NSW)
9. Perth (WA)
10. Mallee (VIC)
Top 10 buyer’s markets:
1. Southern (TAS)
2. West Moreton (QLD)
3. Northern (TAS)
4. Sunshine Coast (QLD)
5. Gold Coast (QLD)
6. Wide Bay-Burnett (QLD)
7. Mersey-Lyell (TAS)
8. Eyre (SA)
9. Far North (QLD)
10. Richmond-Tweed (NSW)
The HBI is based on the ratio of properties available for sale compared with the demand for Commonwealth Bank home loans, to identify hotspots for buyers and sellers across Australia.
The findings from the HBI report are reflected in the Property Buy/Sell Index – a free online tool for prospective buyers that combines historical sales data and current market information to offer insight into whether a particular region is a buyers or seller’s market. The online Index includes expert commentary on each region, and also offers an overview of the national housing market.
To access the report summary visit www.commbank.com.au/hbi
About the Commonwealth Bank/RP Data Home Buyers Index Report
The Commonwealth Bank/RP Data Home Buyers Index provides an estimate of the level of supply and demand that is evident within the Australian real estate market. To calculate an estimate of supply, RP Data closely monitors the number of homes available for sale around Australia, including those from leading real estate portal, realestate.com.au and other real estate groups and advertising portals. On the demand side of the equation, Commonwealth Bank is the nation’s largest home loan lender, and as such can provide one of the timeliest and representative estimates of housing demand in the market place. The HBI is produced across a range of geographic boundaries, from a national index to state level indices, major regional indices, capital cities and broad regions within capital cities.