Things are looking quite good for those who have home renovation on their mind. After sailing against the wind for a long time, the home renovations industry is posting a solid recovery. If you want to know the real cause behind the good fortunes of home renovations industry, you will have to understand the dynamics of dwelling prices and equities.
Homeowners usually get their home renovated with the help of money they borrow against their home equity. Home equity rises when there is a rise in dwelling prices. This had not been the case for a few years now.
With the property market showing optimism, rise in dwelling prices and a subsequent rise in home equity is on the cards. Naturally, Australia will see lot more home renovations projects being undertaken now.
Home building and renovations industry get a shot in the arm
There is brightness all around wherever you fix your glance on the property market. For a long time, nearly running into the first month of 2013, there was a buyer’s market prevailing in Australia. Sellers had to be content with negligible profit margins.
The tide has changed and changed rather smartly. Today, there is an environment of fair exchange- both buyers and sellers are reaping the benefits of mutually advantageous contracts.
The tally of house sales is increasing by the day. Off-the-plan constructions are on at a greater pace. The labour industry is looking to support the home building industry more purposefully.
Prospective customers are making higher number of genuine enquiries. All this has built an aura of optimism around the home building and home renovations industry.
Auction clearance rates near boom-time highs
Sydney is well and truly leading the revival of the auction market. All kinds of properties are showing higher auction clearance rates. Chinese investors and expats are influencing a stronger clearance rate for the Prestige Market.
Lower cash rates influencing borrowings
Lower interest rates have got a lot to do with the housing market revival. In fact, there is a fair chance of further dip in the cash rates. It would make borrowings even more manageable and lesser mortgage pressure would mean rampant housing constructions and upward movement for dwelling prices.
Moving ahead on this train of thought, we can again conclude that the home renovation industry will be benefited a great deal.
The young generation is very keen on renovation
Gen-Yers are looking to extract maximum advantage from the situation. After all, they usually buy low-end homes which have a huge potential for revamping. Smaller units with limited backyard space are easier to renovate, one can easily argue.
If you have been considering some home renovation or getting that extension underway, now may be the time.