long term approach to housing crisis

Long-Term Approach amid a Housing Crisis

Hearing the latest whispers (or rather, shouts) by Mark Bouris on the gloomy affordability of housing, you’d be forgiven for thinking that developers have all but stopped and builders have downed tools. That is not the real scenario, however there is a shortage of construction staff, which is mainly affecting city apartment construction, and rising material prices – leading to many developers sitting on land rather than building.

These factors have a marked effect when Queensland is under pressure to supply enough houses to those moving, plus all the people who want to lease a home.

The National Housing Supply and Affordability Council released its first State of the Housing System report in early May. It said to meet the goals to improve housing outcomes, there are ten areas for concerted effort. These include:

“Positive initiatives to increase public housing stock, improving land use and planning systems, boosting building capacity and improving the quality of housing data.” The report stated that continuing on without change would mean that housing affordability worsens.

They also say, “Increasing housing supply to meet underlying demand will require the Government to achieve their goal of building 1.2 million homes and continuing to grow the volume of home completions thereafter.”

In response, the HIA chief economist, Tim Reardon, is calling for the government of all levels to “reduce the taxes, levies, charges and restrictions on new homes”.

There has been a total of four percentage points added to the underlying lending interest rate since May 2022, which tends to slow the rate of those buying  investment properties.

Resales are a Good Indicator of Estate Home Values

With the development of Morayfield Landing Catrelle’s Rise, we have personally seen how these economic shifts affect the number of new home & land buyers. Resales are a good indicator of an estate maintaining and growing asset values; when the first stage buyers at Catrelle’s Rise went to re-sell, the sellers were happy to achieve a good price. This is something that investors may worry about: what the property will be worth on re-sale.

lot sales morayfield

In the grander scheme of things, we try to interpret what’s happening “out there” in the economic market, and predict what will happen for us. So, you’re likely to want to focus on your own investment, buying or house sale prospects. For these, it’s important to keep in touch with your local estate agent.

Your Current Real Estate agent will be able to share with you a Suburb Profile report — with median prices — and even what developments are happening in your local area. We also are able to give you tips for boosting a home’s saleability – a new eBook is coming soon.