Housing data Opinion
Largest fall in dwelling transactions in more than a decade
What this means for Home Owners...
"... we're rethinking our need for more space, and how we go about creating it for ourselves and our families..." the typical Australian attitude in 2011
In recent years the housing market has seen a sharp decline in both new home sales and purchsing of exisiting properties. This situation impacts anyone considering upsizing to a bigger home, or the alternative, and currently popular option of renovating and extending the current home.
Some experts are suggesting that the preferred option is to renovate and/or extend, as adding value to the current home carry's less risk, and is seen as a means of improving the likelihood of positive selling prices when conditions finally begin to improve.
Prior to the GFC (Global Financial Crisis) in 2008, housing sales activity and unethical lending practices skyrocketed, and in a basic sense played a very large part in the underlying failure of some of the world's largest financial institutions (even Government Central Banks).
Fortunately, Australian banks were not as heavily exposed to the 'toxic' debt packages that were being traded across many parts of the globe.
The period that followed the GFC was relatively painless for many Australians compared to people in other Western Economies, and homeowners here in Australia may be fortunate enough to have held on to their equity and still have solid home values.
But the lack of confidence driven largely by news abroad, and media sensationalism has put a dampener on the "Upgrade Brigade", those who kept believing Newer, Bigger Houses were the way to go.
In a recent report by the Cheif Economist at the Commbank, the ABS (Aust Beaurea of Statistics) declares that house sizes have peaked in Australia, and once again this has implications for many people considering a bigger home. Not surprisingly the result of soft confidence, trends in housing and affordability on people is that we're rethinking our need for more space, and how we go about creating it for ourselves and our families.
Possibly the most important aspect to all of this is "How are we making our decision to spend our Money?"
The answer: We're spending wisely, looking for value for money and companies who can deliver on the promise.
To MOVE or to RENOVATE...?
Spending time carefully weighing up the decision to MOVE or RENOVATE is critical, because getting it wrong and regretting the decision could end up costing you a great deal of money and angst.
TIPS: If considering Moving
- Ensure you calculate the "REAL" costs including Moving Hire, Agents Fees, Stamp Duty, Legal Fees and Insurance, New Rates etc
- Consider your current neighbourhood: What do you like about it that you may not find elsewhere? (Schools, Trustworthy Neighbours, Transport, Shops etc)
Typically a home will appreciate in value over time, albeit at different rates of increases to the value. In the current market conditions, experts suggest upgrading the current home in readiness for the next uptick in confidence and increasing prices, rather than moving to a new address.
However, when it comes to renovations you can certainly recieve unsound advice so be careful when choosing a company to discuss your needs. Plan to renovate sooner in your home ownership cycle rather than later: Harley Dale, chief economist at the Housing Industry Association says that a wait of around 5 years is ideal for maximising your renovation returns.
This would suggest taking steps now to invest in your home: the costs to renovate will increase in the coming years so acting now will save you money.
To arrange a design appointment in your home, or to discuss any aspect of your Renovation plans, please call us on 1300 50 20 20 or Email
