A Buyer's Market for Those Who Can Afford It
affordability. While home values have declined slightly in recent months, the high cost of living and low savings rates are making it difficult for many to accumulate a deposit.
The report shows a 0.3% decrease in home values in October and a 0.9% decline over the quarter. Compared to the national average of 6% growth over the past year, Canberra's 0.4% increase seems modest. This, coupled with properties spending an average of 43 days on the market, suggests a cooling market.
Eliza Owen, head of research at CoreLogic Australia, attributes this trend to affordability constraints. "People are struggling to put a deposit together," she explains, citing high living costs and low savings rates.
Despite the challenges, some buyers are finding success. Megan and Paul Watts, a Canberra couple, recently purchased a home in McKellar for $1 million. They started saving during the pandemic, making sacrifices to reach their goal. "We were just very lucky," Mr. Watts says.
Real estate agent Treston Bamber observes a renewed confidence among buyers, possibly due to the expectation of stable interest rates. However, Ms. Owen notes that the number of sellers exceeding buyers may be partly due to people waiting for interest rate reductions.
Overall, the Canberra housing market presents a buyer's opportunity for those who can afford it. Lower sales volumes, less competition, and more sellers are driving down prices. However, affordability remains a significant hurdle for many potential buyers. Ms. Owen expects values to continue declining until interest rates decrease, potentially boosting buyer activity in the market.