New year, new housing trends to follow. 2018 has just begun and already analysts are pushing and prodding to determine what the next 365 will bring. As with any year, there will be surprises and news that you may not have planned for. But unlike many other years, this year you have the Australian Heritage Homes team on your side to ensure that you have the knowledge that you need. Our know-how and passion doesn’t end when we construct your dream home. In fact, that’s just where the relationship kicks off. We promise to be your partners-in-crime as long as you need, answering questions and giving advice however we can.
That’s why part of the mission of the Australia Heritage Home’s blog is to info-share, and that’s just what we’re doing today. We noticed an interesting article about housing market updates for 2018. Here are some of our key takeaways:
House prices will decline this year. Even though recent Australian building approvals data showed promise – it even got many excited for a residential construction boom – that promise is not set to last. Construction approvals will also decline.
These takeaways come from MSHAUS, which stands for Morgan Stanley’s Australian Housing Model (a bit of a mouthful, isn’t it?) Straight from the bank’s mouth, “updating our proprietary housing indicator for Q3 2017 data (using an estimate for completions), MSHAUS has dropped to a new record low of -1.” The banks further states that this suggests the price decline is not set to change any time soon. In fact, it should continue well into the year.
Geek out on this sort of information? Then you’ll appreciate this- “All categories of an indicator recorded a decline with the largest moves in credit supply, driven by a sharp decline in the share of interest-only lending to 16%, following the implementation of lending caps in the middle of the year.” Don’t geek out on this sort of information? Roughly translated, this means that fewer people are borrowing less money, driving housing prices down.
The full article can be found here, and it brings up an important conversation, purchasing smartly. Hopefully if this has been on the horizon for a while, it’s a project and a goal that you’ve been saving money for. AHH does not advocate for diving into a project of this magnitude without careful thought and consideration.
We put great emphasis on the joy of buying or building your dream home. We hope that you’ve had a vision for many months and we’re passionate about bringing it to life. There is nothing worse than putting half of your effort, half of your money, half of your time into something that should be a blessing for generations to come. That’s why we’re happy to answer any questions that you might have. Thanks to decades of experience, we’ve probably seen it all. So, give us a call, shoot us an email, come visit us in person. We’re grateful to help you take this next step in your life.