REA Group has just released their 2021 Property Outlook Report, which gives some great insight into what’s happening in residential property right now. Feel free to ask us for the full report, however here is a summary of the key trends:
1. Generally, demand for homes has skyrocketed in the past few months. This is due to a combination of factors, including low numbers of properties listed for sale, improved economic conditions, record low interest rates and confidence stemming from the roll-out of the COVID-19 vaccine.
2. Sales volumes and the number of new loans have increased dramatically over the past 6 months. This is set to continue and result in strong rises in property prices for 2021.
3. First home buyer activity, which accelerated last year off the back of government incentives and lack of competition from investors, is expected to slow in 2021 as investors return to the market.
4. Price growth in regional areas has outstripped that of capital cities. Views on real estate jumped by 16% in capital cities during the second half of 2020 but increased by 44% in regional areas. Iron ore price rises are boosting property price growth in mining-driven areas of Western Australia and Queensland.
5. Strong conditions have generated a price boom in the luxury property market, with more than half of Australian suburbs with a median price over $3 million experiencing double digit price growth.
The high demand and price increases combined with low supply, means that if you are considering buying, you should arrange a pre-approval now so that you are ready to go when you find the property you want. Buyers who know their price limit, have their finances sorted and can act quickly, will be a step ahead when it comes to negotiating with vendors.