If you’re a regular on this blog, you already had a chance to take a sneak peek into Adelaide’s property market latest trends. Where do the homeowners stand in global perspective depends on millions of factors, and nearly all of them country-wise and local-related?
However, there are some serious trends noted affecting the property market to a great extent. Truth is, the world is currently in a post-recession era and the financial indicators are shifting in the different direction now comparing to the outlook some 10 years ago.
What does this all mean to the homeowners? Here are a couple of points you will need to keep in mind if you own a property (or if you’re planning to buy one).
Technological advance driving the insurance prices up
As houses are getting ‘’smarter’’ by introducing lots of technological solutions which are applicable both in the phase of construction the building or after that, insurers stand ready to redesign the packages they offer to the homeowners.
Introduction of smart sensors that are able to monitor indicators of possible problems such as wall strength, poor plumbing installation or faulty wiring ultimately reduced the chance of hazards. Furthermore, security solutions such as alarm systems that are connected straight to the homeowners’ cell phones and are triggered by the slightest move or pitch from the outside did make our homes a lot safer.
However, there is the other side of the coin with burglars also reaping the rewards of technological progress and are becoming more ‘’high-tech’’ in the terms of coming up with more advanced ways to avoid modern security systems.
This is why insurance agencies need to restructure and to offer new deals to the homeowners in order to protect them from possible hazards or unforeseen situations that can happen to them (and their homes).
Lack of technological know-how can up the maintenance costs
The second point on our list is also tech-related and closely refers to technological progress. With the inception of contemporary housing appliances and relying on advanced ways to construct houses, there is an open question on who will maintain all of these.
Statistics on Statista showed that the number one challenge American homeowners faced last year were being liquid enough to pay for what they need and figuring out how much things really cost. With ‘’not knowing what or when things will break’’ sitting high on the list, it’s obvious that homeowners are having a hard time finding the time to understand modern and sophisticated features that new appliances and security systems offer to them.
It’s all fun and games until things work, but if something breaks around the house (and it certainly will at some point) you will need to pay a hefty sum for someone to fix it. This is because we are currently lacking for people of required technological literacy that are able to fix things easily and do appropriate maintenance work around the house.
Home equity hitting the record high
Post-recession made it quite impossible for homeowners to upgrade their home or to think about buying a new house. But, as the growth rates of property values declining throughout Australia compared to the last half of 2017, buying a new house will become more affordable to every individual budget there is according to real estate agents.
Rising pricing of properties made everyone want to sell. However, the demand for properties wasn’t able to answer to such high prices so lots of people ultimately opted for renovating the current home instead of purchasing a brand new one.
This trend is likely to reverse in the near future (by the end of the year when consumer’s sentiment changes) but it is anticipated to stay the same throughout 2018.
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