Home Loan Rates Can Affect Direction of Property Values
There are many factors that can affect the direction of real estate values in Australia, including home loan rates.
There are many factors that can affect the direction of real estate values in Australia, including home loan rates.
This is according to Cameron Kusher of RP Data, who asserted that when looking at fluctuations in residential property across the country, there are a variety of things to keep in mind.
One of the most interesting findings to note is that the first quarter of the year - the three months ending March 31 - tends to always be the strongest performer in terms of real estate activity, while the second quarter of the year is usually the slowest when it comes to capital growth.
But while seasonality is important, there are also a number of other considerations to bear in mind when it comes to property prices, said Mr Kusher.
He said: "As we know, economic conditions can, and do change rapidly. When these come into play, we often see a significant impact on the housing market despite conditions being typically stronger over the first and third quarters and weaker over the second and final quarters."
Mr Kusher also pointed to unemployment, housing finance commitments, mortgage rates, consumer sentiment and retail trade as key influencing factors on the Australian property market.