Despite signs the housing market’s growth is expected to slow next year, there is still plenty of opportunity out there for a smart investment.
And, according to the Well Home Loans Green Shoots report, there are a number of metro and regional locations around the country that are likely to experience strong growth next year.
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The suburbs chosen always show the strongest combination of inventory levels decreasing over the past three months, days on market decreasing over the past three months and asking prices increasing over the past three months.
"The Well Home Loans Green Shoots Report doesn't actively search for affordable locations, but, in a nice coincidence, most of the suburbs on this list would be accessible to the average family, with asking prices ranging from less than $300,000 to just under $900,000,” Well Home Loans CEO Scott Spencer said.
“The standout feature about this quarterly report is that it focuses on leading indicators, which give a guide to the future, rather than lagging indicators, which tell you about the past.”
Here is a look at the standout suburbs around Australia.
1. Deebing Heights, QLD
Of all the suburbs in Australia, Deebing Heights in Ipswich, Queensland, is showing the clearest signs that strong price growth is just around the corner, the report found.
The sharp fall in inventory levels (by 72.3 per cent) and days on market (by 15 per cent) over the past three months are key leading indicators.
2. Springfield, QLD
Staying in Ipswich, the Springfield house market also gained momentum over the past three months, with inventory levels falling by a dramatic 67.2 per cent and days on market dropping 23.5 per cent.
3. Jimboomba, QLD
Just 30km away, the Jimboomba house market is also poised for strong price growth, the report expects.
Over the past three months, inventory levels have almost halved, from 11.5 to 6.0 months, while days on market have fallen from 58 to 47 days.
4. Davoren Park, SA
The report found that the South Australian market was showing clear signs of imminent price growth in Davoren Park, in Adelaide.
Over the past three months, inventory levels have fallen 52.2 per cent, while days on market have declined 2.4 per cent.
5. Huntly, VIC
Huntly, in Bendigo, is the standout Victorian location, the report said.
Inventory levels (2.1 months) and days on market (22 days) are incredibly low. Vendors have
noticed, raising their asking prices by 3 per cent over the past three months.
6. Morphettville, SA
The Morphettville house market is another Adelaide suburb that's gained heat over the past three months.
There have been sharp falls in inventory levels (by 56 per cent) and days on market (by 10 per cent), and a strong rise in asking prices (by 3.1 per cent).
7. Melton South, VIC
In Melbourne, the Melton South house market is one to watch, the Wells Home Loan report said.
Over the past quarter, inventory levels have halved, from 9.3 to 4.6 months, while days on market have fallen from 36 to 34 days.
8. Gawler East, SA
“The Gawler East house market is showing clear signs of green shoots,” the report said.
The strongest leading indicator is the 54.4 per cent fall in inventory levels over the past three months, from 8 months to just 3.7 months.
9. Wilton, NSW
“The NSW market showing the clearest signs that strong price growth is just around the corner is the Wilton house market, just outside Sydney,” the report said.
Over the past three months, inventory levels have fallen 46.3 per cent, triggering a 4.3 per cent jump in asking prices.
10. Denham Court, NSW
The Denham Court house market, in western Sydney, has also heated up over the past three months, the report found.
“Inventory levels have fallen dramatically, from a high 9.3 months to a fairly low 5.3 months,” it said.
Days on market have also fallen, from 35 to 33 days.
11. Como, WA
Western Australia’s standout location is the Como house market, in south Perth.
“During the past three months, there have been significant changes in inventory levels
(down 39.8 per cent) and asking prices (up 6.2 per cent).
12. Alkimos, WA
On the other side of Perth, the Alkimos house market has made quite a move over the past three months, with inventory levels falling 39.8 per cent, days on market falling
15.3 per cent and asking prices rising 2.6 per cent.
13. Uralla, NSW
“The Uralla house market, in regional NSW, is very affordable, with asking prices at just $375,000,” the report said.
Prices look likely to climb sharply in the near future, with inventory levels (down 36.8 per cent) and days on market (down 9.2 per cent) both tumbling over the past quarter.