Six weeks after the amended initiative now known as the 5% Deposit Scheme came into effect on October 1st, property data analysts Cotality (previously called CoreLogic) released their October statistics indicating that the critics were right – prices have risen.
When the amended first home buyer scheme also raised property price caps and abolished income limits along with lender’s mortgage insurance, buyers naturally took advantage of the 5% deposit rate. Across the nation first home buyers became increasingly active in the lower end of the property market, driving up competition and demand while stock remains low.
So, as anticipated, October property value figures showed that national prices rose across the board, up by 4.2% in the lower quartile (cheapest homes) compared to 2.2% in the upper quartile (most expensive homes).
In Melbourne it was a similar story. Lower quartile property values rose by 2.5% versus 0.5% in the upper quartile. At Chamberlain Property Advocates we certainly experienced an uptick in enquiries from first home buyers and saw more competitive bidders at auctions.
For first home buyers with the ability to obtain and service a mortgage of up to 95% on homes valued up to the Melbourne price cap of $950,000, rising property prices won’t be such a problem. But some new buyers may just end up back where they were before the federal government lent a ‘helping hand’ – priced out of the market altogether because finding an affordable home and mortgage isn’t made easier by rising property prices.
Chat to us about how a property advocate can help you sell or buy in the current market with confidence. Investment buyers can receive invaluable support and guidance through our Buyers Advocacy Service, and for landlords who are selling, our Vendor Advocacy Service helps vendors achieve outstanding results.
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