After last year's real estate boom in Australia, especially in the Sydney and Melbourne markets, many Australians now think that their house is worth more.
According to Domain, a survey shows that many Australians think this way even if those two markets have already shown signs of a slowdown. The survey among 2,000 homeowners conducted by law firm Slater and Gordon has discovered that 78 percent or 1,560 of the respondents believe that the value of their homes have increased in one year's time. And a third of that are reportedly contemplating on selling up to cash on the price increase.
In the meantime, nearly all or 94 percent of the survey respondents from Sydney believe that their properties have appreciated while only 89 percent of those from Melbourne feel the same. And the main reason why they think their property values are boosted is the fact that both market have seen growth last year. Their belief upholds even if these markets have cooled towards the end of the year.
According to a Domain Group Data, auction clearance rates fell to 61 percent in Sydney and 69 percent in Melbourne by the last auction week. Moreover, even if median prices in Sydney's housing market have hit the $1 million mark, growth slackened to only 3.2 percent, which is considered the lowest quarterly rate of growth since March 2014. Melbourne also saw the same trend in housing prices by September quarter.
On the other hand, Brisbane has seen a moderate price increase as Perth prices sank further by the same quarter. Adelaide has seen nearly no change. Despite the gradually slackening of prices, Brisbane, Adelaide and Perth homeowners also believe their properties to have appreciated. Ray White chief executive Brian White commented by saying low interest rates created a nation-wide assumption that the property market is still as strong as the boom in 2015.
