At the beginning of 2020, the real estate market was dominated by buyers. But as the year progressed, there came a coronavirus pandemic which was a very large hiccup to the economy of Australia. However, the property market swiftly bounced back. According to research firm CoreLogic, the property values grew higher during the lockdown period:
“While the initial shock of COVID-19 led to a -2.1% decline in national property values between April and September, Australian housing values were 1.1% higher over the year to November following a recovery trend in the last two months.”
The incentives and low-interest rates from the government have caused a higher level of buyer demand in the real estate sector. This has led to first-time buyers showing a strong interest in real estate properties. The market has now rapidly turned into a sellers’ market for a number of reasons.
People have been restricted on how they can spend their money
During the lockdown period, people could not move overseas, and neither could they go to entertainment areas. The ability to work from home further prompted the move towards buying properties outside the city. As a result, the prices of properties (already deemed a highly valued asset in Australian society) have continued their steady rise.
Limited stock in the market
Homeowners have realised that there is not enough stock in the market to satisfy the buyer, hence having a higher advantage on the market. Of the properties that are on the market, the amount of time they are up for sale has steadily decreased. According to data from SQM Research, fewer than half of homes for sale in the harbour city last month were on the market for more than 30 days, down from two-thirds of homes at the same time last year.
Low mortgage rates
Mortgage rates at a historical low are enticing buyers, especially first-time buyers, to buy houses of their own. This has impacted the overall value for houses, with an increase in home loans placing upward pressure on prices through 2021. In fact, More than just low interest rates, the combination with the federal government’s HomeBuilder program plus state-level support policies means that property prices are actually higher than they were at their pre-pandemic rates. Westpac economists have stated:
“The upturn is being supported by record-low interest rates, the confident expectation amongst borrowers that these rates will remain low for years to come, ample credit supply and an improving economic backdrop as the rollout of vaccines promises to bring the pandemic to an end and drives a sustained lift in confidence.”
Taking these factors into consideration, it’s obvious that 2021 seems to be the best time for selling your property. Here at Will Property, we boast a range of property management services dedicated to helping you achieve the result you want. Call us today or browse our range of current properties.