Property valuers predict more price hikes as Aussies give up on home ownership
Young Australians are increasingly giving up on the dream of home ownership as soaring house prices and stagnant wage increases scuttle the once-conservative dream of a quarter-acre block.
New research from the Australian Property Institute and The Search People has found that professional property valuers believe Australia's house prices will continue to spike despite already deep affordability concerns.
A survey of 500 property valuers, who spend every day assessing stock on the market, found that more than half believe Aussies are over-borrowing just to get into the market.
"A combination of record-low interest rates and buyer uncertainty of investing in other alternatives is fueling high demand. This coupled with low supply is driving a 'fear of missing out' for many buyers," says Rafe Berding, CEO of property technology provider The Search People.
"As a result, in some cases, properties are being snapped up significantly above the asking price within moments of being listed."
"Most respondents believe a boom is set for the Australia property sector, however 59 per cent also believe Australia is currently witnessing the makings of a property bubble," said Mr Berding.
Chief executive of the Australian Property Institute Amelia Hodge said Australia's property market is so hot right now that institute members are experiencing capacity constraints due to the sheer number of interested parties.
"With record low interest rates, we are seeing more and more buyers entering the market," she said.
"This is great news for Australians selling property, especially with values on the rise in most sectors and selling times decreasing across most capital cities."
Ms Hodge recommends that buyers interested in entering the market should have their financial ducks in a row before taking the plunge.
"For property investors and buyers, we would recommend ensuring you have your budget, finance and valuation research in order as early as possible to ensure you can decisively move on opportunities with confidence and speed," she said.
"This should always be underpinned by an independent valuation undertaken by an appropriately qualified property professional."