00:00The data is showing that the housing market is heating up again.
00:06National house prices rose 1.1% over the month of October and 6.1% over the year.
00:14Every capital city recorded gains and the regions, the regions are performing very strongly
00:20with a 7.5% annual gain.
00:23Tim Lawless from Coatality explains what they're seeing in the housing market.
00:29Anecdotally, we're definitely hearing from the marketplace, from buyers, agents, from
00:33real estate agents as well, that there is a lot more demands across those markets that
00:38come in below the price caps.
00:40Remember, Sydney has a price cap of $1.5 million, so your typical median house value in Sydney
00:46is just a little bit above that benchmark now, and we can see based on the number of suburbs
00:50that come in below the pricing thresholds, that's starting to diminish now.
00:55So I think for first home buyers, trying to take advantage of this opportunity to get
01:00into the market with a 5% deposit guarantee, it is going to be a case of first in best dressed
01:05because we're already starting to see fewer and fewer suburbs are showing price points
01:10that are below those price caps.
01:12As Tim mentioned there, obviously first home buyers are coming back, helped by rate cuts
01:18and the government incentives.
01:20But on top of that, we're seeing a lot of investors return to the market, and these investors
01:25are obviously competing against these first home buyers, and some first home buyers are
01:31being priced out of the market.
01:33And what's really interesting in the data is that some first home buyers, so about 6% according
01:39to the latest lending data, are actually not moving into the market buying their first home,
01:45but they're coming in as investors, so they're trying to break in, they're perhaps not buying
01:50their dream home, but a smaller unit or a smaller apartment, and they're building up equity
01:56and then paying down that loan to eventually be able to buy their dream home.
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