Are you wondering what the outlook for the Australian housing market is for 2021 and beyond? Now that the markets are up and running again after COVID, what does that mean for you as a buyer?
If you have questions about the current real estate conditions, we’re recapping all of the need-to-know information in this special report.
House prices continue to surge across the country, with values up by at least 1% in every capital city in May. The real estate market in Australia is booming, with the CoreLogic home value index rising by 2.2% in May, shy of the 2.8% pace in March. That’s a 32 year high!
The buyer demand at the moment is so intense that it is slowly outweighing sellers’ ability to put their property on the market. The competition is relatively high, and now more than ever investing in real estate requires research and the help from a professional who understands the market well.
Causes of the Strong Demand
One reason why the demand for housing in Australia is constantly rising is the improving economic conditions and low-interest rates. As the market improves, low-interest rates will likely rise, making now the best time to invest in property.
In Australia, the advertised supply is well below average, creating urgency amongst home buyers. It is another reason why there is persistent pressure on the housing prices within the country, and why we encourage those who want to get property to act fast.
The Housing Market by Numbers
The Australian real estate market is soaring. We’ve seen the number of home loans increase significantly to the highest level in over two years, and property interest continues to increase month over month.
According to the Reserve Bank of Australia, credit figures indicated that the total housing loans recorded an increase of 0.5% in April from the annual pace of 4.4%, which is the highest since January 2019. People are looking for a quick solution to secure housing, and it is a trend that should last for some time, so the credit figures are bound to keep rising.
On the other hand, mortgages to owner-occupiers rose by 0.6% to 6.2% annually, as investors start to get on board after being notably absent. Another reason for Australia’s booming real estate market is the rise in investor loans by 0.4% to 1.1% annually, which recorded the highest rate since December 2018.
What to Expect in 2021
Real estate property is in high demand, and speculation over what might initiate a fall in the property market now depends on whether interest rates rise, whether the government continues to support first-time homebuyers, and whether there are restrictions on banks on how much they can lend. The real estate conditions continue to respond to many positive factors, such as the low-interest rates and current economic conditions. Currently, most Australians seem confident and optimistic about making high-commitment decisions concerning the property market. Unfortunately, while demand continues to skyrocket, it has not been met so far by the same level of increase in the inventory. Notably, the upward pressure on housing prices in Australia might stick around thanks to the urgency amongst homebuyers. We expect the real estate conditions will continue to improve, but that also means that housing rates will likely rise, making now the best time to buy property. There’s a lot of great investment opportunities out there right now, but it’s more important than ever to have a strategy backing you. Are you ready to create a strategy for your next investment property? Our team of experts are here to help! Our process is as easy as 1, 2, 3, and free to you.- We start by helping you set clear goals and objectives as to what you want to achieve through property investment.
- From there, we run the numbers through proprietary software to accurately assess exactly what you need out of a property portfolio to achieve those goals.
- Lastly, we find the perfect property to make those objectives a reality!
