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Buyers and sellers now balance the property market on a national level, although there are marked differences within states, cities and regions, according to the latest Commonwealth Bank/CoreLogic RP Data Home Buyers Index (HBI).
The HBI is based on the ratio of properties available for sale compared with the number of housing loans that are being committed to by Commonwealth Bank, Australia’s largest home loan provider.
The latest report reveals that as of October 2014, market conditions across each of the states were varied, with Queensland, Tasmania, and the Northern Territory all skewed towards buyers, while Victoria became the only state to move from a balanced market in July 2014 to a seller’s market in October 2014. All the other states and territories showed balanced conditions.
The best opportunities for buyers were to be found in regional markets, with metropolitan areas including state capitals generally being balanced, or tipped in favour of sellers. At a state capital level, Australia’s two largest cities, Sydney and Melbourne, continue to offer the best conditions for sellers. Melbourne properties in particular are seeing high levels of demand and rapid sales, and the market has moved even further in favour of sellers over the three months to October 2014. However, it is not all bad news for buyers in state capitals; Brisbane and Hobart both favour buyers.
The top five buyer’s markets in Australia were:
For sellers, the best opportunities were to be found in Victoria, with the Central Highlands replacing Sydney as the top seller’s market in Australia.
The top five best seller’s markets in Australia were:
The latest HBI report reveals a number of interesting opportunities for home buyers, says Lyn Cobley, Executive General Manager, Retail Products & Third Party Banking, Commonwealth Bank.
“While the October 2014 report shows conditions have become more balanced between buyers and sellers nationally, at a state and capital city level market conditions vary significantly. Overall, conditions in capital cities are either balanced or in favour of the seller. Home buyers in metropolitan areas should ensure they make rational purchasing decisions in line with their budget.
“There are more promising opportunities for home buyers looking to purchase a property in the regional and coastal areas of Queensland, the Northern Territory and Tasmania. Buyers in these regions may be able to drive a better deal on sale negotiations. However, as always we recommend that home buyers research the market and use tools such as the HBI to identify the best opportunities before purchasing a home.
“Finally, for any home buyers looking to purchase a property in challenging markets like Sydney or Melbourne, it’s important to look around and consider opportunities in outer suburbs, which can often be more affordable. Make sure you speak to your bank about the best way to finance your property purchase in an affordable way,” says Ms Cobley.
Tim Lawless, National Research Director, CoreLogic RP Data says that despite the shift in conditions towards sellers in Victoria, the property market across Australia is generally balanced.
“Conditions over the past three months have generally become more balanced between buyers and sellers, and the October report shows that even Sydney has started to balance out, although it remains a seller’s market,” he says.
“The report reveals that regional and coastal property markets in Queensland, Tasmania and the Northern Territory offer the best deals for buyers and that Victoria, particularly Melbourne, has the best opportunities for sellers.”
To access the report summary, visit commbank.com.au/hbi.
Editor’s note: About the Commonwealth Bank/CoreLogic RP Data Home Buyers Index Report