It's important to understand what's driving the Australian economy – especially when you're a homeowner, property investor or hopeful first homebuyer.
The last year has been a steady one for the Australian economy. It hasn't fired up – but it hasn't slowed dangerously, which is good news.
NAB lowered its overall growth forecast for FY2015/16 to 3% in March (from 3.2%). Why? Weaker business investment, a slightly higher unemployment rate, and weak domestic consumption mean slower overall growth.
House prices and investment
With so much data available on how national and local housing markets are faring, it's not hard to stay informed on how property values are developing.
Property value performance during April 2015:
Hobart up 1.6%
Adelaide up 1.6%
Sydney up 1.0%
Melbourne up 0.8%
Brisbane up 0.6%
Perth up 0.6%
Darwin up 0.3%
Canberra down 1.5%
Over the quarter the combined capitals were up 2.5%, with Sydney (up 5.4%) the clear leader, followed by Darwin up 2.1% and Adelaide up 1.9%.
Looking at the bigger picture, the annual value growth across the capitals to the end of April was 7.9%. This annual growth rate remains below the market peak of 11.5% in April 2014, but is still above the 7.4% recorded during March.
Hobart remains the most affordable capital city for housing, as the only capital with over 5% of house sales below $200,000. In contrast, almost one third (31.6%) of all house sales were over $1 million.
Housing investment and building approvals continue to remain steadily strong, despite attempts to tighten foreign investment rules. NAB expects to see similar or stronger growth in dwelling investment over the next year.
We're always happy to point you towards the latest research and data on the economy and housing market or if you are interested in obtaining an updated valuation on your property, touch base today.
For more information on a Darwin home loan from a mortgage broker based in Darwin call today on 0447 499 794.