A new report has identified 20 markets across Australia showing telltale signs of robust near-term price gains.
Well Home Loans' Green Shoots report analyzed trends in asking prices, inventory and time to sell over the three month period through July to identify the list of promising housing markets.
The list is a diverse set of markets comprising 14 metropolitan cities and six regional locations from different states and territories.
Well Home Loans CEO Scott Spencer said the list features markets that can cater to a wide range of buyers – from investors to first-time buyers – with different budgets.
"This shows that no matter where you live, there could be a housing market nearby where prices are expected to accelerate in the not-so-distant future," Mr Spencer said.
“This gives you a potential opportunity if you are thinking about buying. "
Market indicators to watch
Mr. Spencer stated that home inventory is a crucial factor that could indicate whether a market will be in favor of buyers or sellers.
Inventory level refers to the time it would take to sell all the properties in a given location if the properties continued to sell at the current rate and no more properties were added. at the market.
Declining inventory levels indicate that it is becoming increasingly difficult for buyers to find properties in a particular market.
"This is a clue as to how prices are likely to move in the months and years to come," he said.
The time it takes to close a home sale is also a critical factor when predicting price movements.
“When the days on the market are down, it tells you that buyers are forced to fight harder for properties, which puts upward pressure on prices.
“All of this translates into asking prices. When sellers feel the market is turning in their favor, they start to increase their asking prices. "
Unit markets dominate the list
Of the 20 markets listed, 12 are unit markets.
Oxley Park in Sydney is one of the strongest markets on the list. In the past three months, its stock level has dropped from 5.4 months to 3.1 months. During the period, his days in the market also fell from 54 days to 42 days, resulting in a 5.1% increase in the median asking price to $ 559,000.
The Rainbow Beach Unit Market in Queensland is also another market to watch. During the period, its stock level increased from 6.1 to 3.4 months while the selling days increased from 157 to 115 days. Units in this market had a median asking price of $ 299,000, reflecting a gain of 4.9%.
The unit market from Glenelg to Adelaide is also showing clear signs of future gains, with inventory levels dropping from 4.7 months to 3.1 months. Units take 43 days to sell in this market, relatively faster than the previous period. The median market unit price is $ 485,000, which represents a 9 percent increase.
Housing markets have potential
Mount Johns in Alice Springs is expected to show robust growth in the near term. It recorded a drastic change in the level of stocks from 9.6 to 3.4 months. The days to market have also been reduced from 99 to 78 days. While its median asking price was unchanged at $ 680,000 during the quarter, tighter conditions point to a near-term rise.
South Australia markets topped the list, representing four of the eight housing markets to watch. For example, Hackham in Adelaide is poised to witness continued upward pressure on prices as inventory levels and days to market shrink. The market has already recorded an increase in the median house price to $ 370,800 during the three-month period.
Top Suburbs:
nunda
,
spring wood
,
menai
,
new farm
,
western wodonga
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