Three things worth taking a closer look at in our housing market

There are three things that I think are worth taking a closer look at in our housing market.

Well, there's the home buyer profile, housing constraints and conditions affecting the buyers' decision to buy.

In this article, I'll discuss the latest trends in these.

Buyer profile

Table 1 outlines the spread of buyer types for both new homes and established digs across Australia.

It also forecasts market size by buyer type this time next year.

When it comes to new homes expect less first home buying activity over the next twelve months; steady action regarding other owner residents plus overseas interest but a rise in domestic investors as some dwellings experience a fall in price and generic rents rise providing better gross rental returns.

Housing constraints

Table 2 outlines what is currently restricting new housing projects and the established dwelling market.

There's little surprise that interest rates are a brake on both markets.

Labour availability and construction prices are also still retarding new development.

What’s important

Table 3 outlines what’s important when people are deciding to buy a home.

How much a buyer can borrow tops the list.

Interestingly energy efficiency – for most – is way down the inventory.

Buying factors that are trending - and in all three cases are becoming less important.

This includes allotment size; having a dedicated study or work area or being in a regional location.

It seems that many of those theoretical lifelong changes brought on by Covid (and the range of associated restrictions) appear to have been somewhat temporary after all.

About Michael Matusik Michael is director of independent property advisory Matusik Property Insights. He is independent, perceptive and to the point; has helped over 550 new residential developments come to fruition and writes his insightful Matusik Missive