Daily Buzz: Wednesday, 28 August
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PropertyBuzz, your daily dose of property news.
2021 revealed as the favourite year for home buying, what happened when a Mandurah builder went bust, and five Sydney suburbs receiving a rise in attention.
Welcome to Property Buzz! I’m Juliet Helmke. Today is Wednesday, 28 August.
– New analysis from CoreLogic has revealed that 2021 is the most common year in which homes were last purchased, with an estimated 549,000 homes last sold during the 12 month period – or 5.3 per cent of housing stock.
– It was a year defined by the fear-of-missing-out, when many home buyers decided to pull the trigger on making a move or buying their first property. But CoreLogic’s findings show that while 2021 may have been the most popular year to buy in recent history, purchasers need not have been so hasty.
– At a national level, home values have increased 7.6 per cent since the end of 2021, which is not as strong as the returns for those that bought a year later, when market values saw a short, sharp dip in response to rising interest rates, before rebounding to new record highs.
– Added to that, average mortgage rates for outstanding owner-occupied borrowers at the end of 2021 have increased 335 basis points, which might have led to greater sticker shock for 2021 buyers, who have seen their mortgage repayments increase by roughly 50 per cent since their purchase date.
– In the construction sector, a Mandurah-based builder was fined $2,000 for not purchasing mandatory Home Indemnity Insurance before starting work on a Dudley Park home, leading to the client losing $132,000 when the builder went bankrupt.
– Home Indemnity Insurance is required by law for all residential building projects over $20,000, but consumers are being urged to check and make sure that any contractors they engage are following the letter of law, as this case shows how catastrophic the results can be if a builder goes bust without insurance in place.
– The Mandurah resident is currently trying to recoup the losses, with the builder ordered to repay more than $130,000 to the homeowner, but that currently has gone unpaid.
– And new research has highlighted five Sydney suburbs receiving a lot of attention from active buyers, albeit for different reasons.
– Emu Plains is popular among buyers who want bang for their buck, with Sydney’s western fringes remaining one of the strongest options for affordability.
– Moving closer towards the city, Liverpool is only a fraction more expensive than Emu Plains, with a median house price of $1,000,000, which is making it a top pick for investors.
– Camperdown, in Sydney’s inner west, is picked by those who want proximity to the city as well as the University of Sydney, but on average they’ll need to find in excess of $2 million to secure a property.
– Moving into an even higher price point, Manly Vale is attracting families who can pay roughly $3 million.
– And Concord West has been garnering attention from those who want standalone houses with easy access to rail links.
That’s Property Buzz for today. See you again tomorrow, 29 August, for your daily dose of Property Buzz
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