The next few months may be the perfect time to consider selling residential real estate, as house prices are rising and affordability is improving.
Real estate in Australia is currently in a 'growth phase', according to new information released from the Real Estate Institute in Australia (REIA) in conjunction with Bendigo Bank.
The 'Real Estate Market Facts' publication outlined housing in Australia's capital cities experienced a weighted average median house price rise of 3 per cent over the September quarter. Units also saw growth at a lower level of 2.2 per cent.
"The weighted average, median house price for eight capital cities is now $562,503. Sydney, Melbourne, Brisbane and Hobart contributed to the increase, while Perth recorded the biggest drop, down by 3 per cent," said REIA President Peter Bushby in a December 11 statement.
"At $722,718, the Sydney median house price is the highest across the capital cities. Hobart remains the lowest at $352,000, 37.4 per cent lower than the national weighted average."
Overall, weighted median house prices have increased by 9.5 per cent year-on-year, showing the strength of the market throughout 2013.
Despite rising house prices across the country over the last few months, the Australian real estate market has seen a significant improvement in affordability.
The Adelaide Bank/REIA Housing Affordability Report reported a 1.2 per cent decrease in the proportion of income needed to meet mortgage repayments over the September quarter. Currently, the proportion rests at 29.8 per cent.
"All states and territories recorded improvements in affordability over the quarter - the largest in Tasmania, where the proportion dropped by 1.6 percentage points to 24.6 per cent," said Mr Bushby in a December 4 statement.
The improvement in housing affordability over recent months has largely been attributed to reductions made to the official cash rate.
Commenting on the current historically low cash rate, Loan Market Director Mark De Martino stated home loan customers and property buyers have "been huge winners over the past several months".
"Whether it is discounting rates, waiving fees or offering cash-back incentives, there’s a level of competition between lenders that’s extremely intense," Mr De Martino said in a December 3 statement.
Mr De Martino said he expects the property market to continue to recover and set new highs, while investor activity remains buoyant in many areas.
