To maximise your chances of securing a home, ensure you have saved a good deposit, can demonstrate that you can adequately afford the loan repayments, (even if interest rates rise) and your finance is pre-approved with as few conditions as possible.

Posted in: Insights, News

13/04/2021

Adelaide House Prices Continue To Set New Highs - Mark Lewis

The Adelaide housing market keeps going from strength to strength with a new record high being set from one month to the next. According to data from Corelogic, in March alone the Adelaide median house price rose 1.5%, which is the highest single month increase since December 2007.

Here in Adelaide we were one of the least affected cities in Australia with respect to COVID. In fact, we were probably one of the least affected cities anywhere in the world.

Consequently our house prices were only minimally affected with just a -0.2% dip in May 2020 as we came out of our few weeks of lockdown, and since then our market has recorded strong increases each month.

The two main factors contributing to our strong growth are record low interest rates and low levels of stock on the market.

Never before have we seen interest rates so low, with some lenders offering variable rate loans in the very low two percent range and some fixed rates below 1.80%. Repayment affordability at current rates has never been better.

The low levels of stock on the market is proof that when demand is high and supply is low, then prices inevitably go up. Current stock on the market is in excess of 30% lower than pre COVID levels. Further, at present the market is in a ‘net deficit’ environment, meaning more houses are selling than what is coming onto the market, further exacerbating the supply problem. 

With prices increasing so fast, many are feeling challenged and even losing hope in their dream of owning their own home.

To maximise your chances of securing a home, ensure you have saved a good deposit, can demonstrate that you can adequately afford the loan repayments, (even if interest rates rise) and your finance is pre-approved with as few conditions as possible.

A Bernie Lewis Home Loans Mortgage Broker can assist and guide you through the process of maximising your chances of being successful in securing your dream home.

Call us on 8300 8300 or email info@bernielewis.com.au, seven days a week to speak with one of our Mortgage Brokers.