The market surrounding real estate is complex and going through constant change. The conditions of the market directly affect the price of properties.
Getting an independent property valuation in NSW is the most reliable method of finding a property’s market value. This service is provided by qualified property specialists registered with the Australian Property Institute (API).
Valuers understand the various factors affecting the state of the market and apply their expertise to carefully determine the existing market conditions. Reviewing the various factors impacting the market can help you gain some understanding of how the market moves.
What factors impact the conditions of the market?
The housing market never stands still. The ever-changing conditions can sometimes lead to ill-informed decisions and misconceptions.
A few of the main factors affecting the state of the real estate market are:
Interest rates
Lower interest rates imply lower mortgage repayments which lead to increased borrowing capacity for those in need. This can result in an increase in demand for housing and ultimately a higher price for real estate.
Government policies and subsidies
The existing legislation and policies in place can have a meaningful impact on the state of the real estate market. Taxation credits, deductions and subsidies are a few of the methods that government can temporarily increase the demand for property.
Investment demand
Investment demand will directly increase the price of property. Factors such as tax benefits, underlying socio-demographic factors, institutional reforms, increasing rental income, broader development in the economy and capital markets all contribute towards investment demand for housing.
Economic climate
The state of the economy, of course, affects the state of the housing market. Employment rates, inflation rates, and average household income all impacts the economy and therefore the conditions of the real estate market.
Demography
Demographic factors meaningfully move the real estate market in the long term. An increasing population growth leads to more households in the country; ultimately leading to increased housing demand and therefore the price of real estate.
How to find the market value of a property in NSW
As the real estate market is constantly changing, getting help from an expert is important when looking to find the value of a property. For a reliable calculation of a property’s market value, you’ll need assistance from a Certified Practising Valuers (CPV).
CPVs are trained property specialists skilled at finding the value for all sorts of property types. As API-registered professionals, they can prepare detailed and reliable valuation reports covering every factor that contributing factor.
As real estate experts, valuers ensure each report is prepared in line with the existing market conditions. A valuation report from a qualified CPV is seen as official proof of value in the eyes of the law.
In general, valuations can be performed on residential, commercial, industrial and rural properties. CPVs have the expertise, qualifications and skillset to provide clear outlines of market value.
When is the best time to buy a property?
Purchasing real estate is a long-term investment, and the last thing you want to do is rush into it. Before you sign that contract, there are a few boxes you may first want to tick off.
The most important concern when it comes to buying a house is finances. Multiple aspects make up when the best time to buy a house is, such as:
Financial stability
Only ever consider purchasing a property if you are financially stable. As you will need to prove to lenders that you can sufficiently budget for mortgage payments and utilities. Your credit score and history of debt will also play a role.
Steady income
You should also avoid purchasing a home unless you have a steady and reliable income. If you’re in between jobs or struggling to find freelance opportunities, it’s best to hold off on buying property until you can guarantee an efficient monthly income.
No plans for significant changes in the near future
Your future plans may impact your ability to budget for buying a property. If you are expecting to move countries, or you’re having a baby, or hope to secure a loan for another investment, you need to carefully consider whether buying a house is the right move for you financially.
Savings
The unpredictable nature of life makes it incredibly important to have adequate savings. While you may not be expecting any significant changes, sometimes life makes that decision for you, and you may be left in a financially vulnerable situation.
Summary
The real estate market is always changing. Constant fluctuations can sometimes leave people confused regarding the existing value of a property.
In NSW, getting a property valuation report is a great way to determine the market value of the property. CPVs will apply their understanding of the market to outline the existing conditions.
The property is affected by a multitude of factors. These include investment demand, interest rates, government policies, and demographics.
A tried and tested method of finding the value of a property in NSW is to hire the services of an API-registered CPV. CPVs are trained professionals skilled at determining the market value of a subject property.
Even if the real estate market is in good condition, you should make sure you’re financially stable before purchasing a property.
For more information on the factors that affect the real estate market, give us a call. We would be happy to answer your queries.
