Professionals Modbury
Why is now a great time to be buying a house in Adelaide?
REASON 1: AUCTION CLEARANCE RATES
It has been touted as the highest in years, which is unusual to see in February. Commonly, autumn is the peak in auction markets.
This scenario indicates demand exceeding supply, thus encouraging people to buy property.
According to CoreLogic’s latest Quarterly Auction Market Review – “Auction clearance rates reached 67.1% on 1,014 auctions held in the three months to December 2020. It was up on the 57.4% clearance rate recorded on 1,385 auctions held in the December 2019 quarter.”
The property market in the next two years is predicted to grow at a steady pace by many industry spectators and experts.
REASON 2: LOW INTEREST RATES
According to historical home loan rate averages between 1959 & 2020 (source: RBA Indicator lending rates), the average standard variable rate (owner-occupier), average discounted variable rate (owner-occupier) & average 3-years fixed-rate (owner-occupier) are considerably low, which is great news for buyers.
Source: finder.com.au & RBA Indicator lending rates
REASON 3: FIRST HOME BUYER GRANTS
The ongoing support for first-time home buyers in Adelaide is another valid reason why buyers are eager to enter the market. Let’s take a closer look at these grants.
- SA First Home Buyer Grant: Qualified buyers can access the grant of $15,000 from the SA government when building their new home. However, there are specific eligibility criteria to fulfil.
- Home Builder Grant: It is an additional $15,000 from the June Home Builder scheme announcement. It applies to building contracts signed before 31/03/2021.
Overall, it is a fantastic time if you are a 1st home buyer as you can get up to $30,000 in contributions and bonuses.
REASON 4: RENTS ARE OFF-THE-CHARTS
A significant increase in weekly rent has been observed in the past three months, whether you are a new tenant or merely renewing your agreement.
In addition to the ongoing government support for first home buyers in SA and the lower interest rate, rising rental prices are sparking a shift from renting to owning as the gap between the cost of renting and owning in some cases may only be quite small.
NOW IS A GREAT TIME TO TAKE ACTION
With the HomeBuilder Grant closing soon, taking action now could be the difference between owning your own home or continuing to rent.
We’re here to help you with our First Time Buyer Program, even if you are starting from scratch, we have some nice house and land packages waiting for you.
Just call Filip directly on 0432 230 298 for a quick chat.