Changes in the Australian Property Market: PEXA
Changes in the Australian Property Market: PEXA
Get PEXA’s Mortgage Insights Report for an overview of changes in Australian property market.
PEXA’s latest Mortgage Insights Report for 2023 gives us a clear picture of how the property market is changing across Australia. It shows that median loan values in NSW and Victoria have gone down, hinting that buyers might be looking for more affordable options. The head researcher at PEXA thinks this means Aussies are aiming for smaller loans due to things like higher interest rates and living costs. But in Queensland, median loan values went up, showing strong demand, especially since it had the most property sales.
In 2023, Australians borrowed a big $300.9 billion to buy homes, which was 12.7% less than the year before. This drop happened because the Reserve Bank of Australia raised interest rates and there were other economic pressures. But, more people were refinancing their homes, which went up by 11.4% to $220.4 billion. Usually, when interest rates go up, more people refinance, but towards the end of 2023, there was a decrease, maybe because of the RBA’s interest rate hike in November, which happened around the holidays.
The report also tells us about borrowing trends in different states. It shows that there were big drops in new borrowing in places like NSW and Victoria. But at the same time, more people were refinancing their homes. This suggests that homeowners are reacting to changes in the economy and interest rates. Even though refinancing went up a lot during the year, it slowed down towards the end. This might be because of the Reserve Bank of Australia’s interest rate changes happening around that time.
Looking forward, PEXA’s findings show us how the property market is always changing. It’s important for everyone involved to be flexible and ready to adapt to economic changes. As interest rates and economic conditions affect how people borrow money, those in the property sector need to stay alert and adjust to new trends to do well in this ever-changing market.
Conclusion
PEXA’s 2023 Mortgage Insights Report reveals changes in Australia’s property market. It shows lower loan values in NSW and Victoria, while Queensland sees an increase, indicating strong demand. Despite a drop in total borrowing, more people are refinancing homes. This suggests homeowners are adapting to economic shifts. The report highlights the need for flexibility in response to changing conditions.
For more Detailed Insights into the market, Book your consultation now or give us a Call at 1300 GET LOAN.
Related post
