By Adam Schutz
Stockdale & Leggo EVR Property Group EVR Business Brokers
Koo Wee Rup, Hastings and Phillip Island
THERE has been a lot of talk about 2021 being a property boom year, with analysts predicting record-high property prices with the change of the work/life balance shifting to work from home and steady low interest rates.
We are just past the halfway mark of 2021 now; so how are we tracking for these record-setting sales?
Well one thing is for sure, the banks are benefiting with borrowers taking on larger or additional loans. And surprisingly, the biggest increase has been in investment loans, with existing homeowners choosing now as the time to start investing.
While government stimulus packages to boost the construction industry helped first home buyers to get into the market during the lockdown periods of 2020, in a post-COVID
Australia, it has driven prices up, putting the first home buyer on the backfoot of buying once again.
There is no doubt it is a currently a sellers’ market with buyer demand much higher than the low levels of stock available, driving up house prices for sellers, and further increasing the gap for first home buyers to enter the market.
So, are we setting records on housing prices?
The answer is yes.
House values surged 2.1 per cent in February 2021 nationwide, which is the largest increase since August 2003. All the while seeing the number of advertised properties for
February down 26 per cent year on year. While the increase continues overall, figures from April show that the growth pace is now slowing down but will still continue to show steady year on year increases.
With Australia already having four major cities in the top ten of most expensive cities to live in (Melbourne, Brisbane, Sydney & Adelaide), the benefit of our post-Covid world has been the work from home option opening up a much broader area for buyers away from major cities.
Outside major cities, sellers are feeling the benefits of the market increase, but are clearly still wary with low stock levels being reported in regional Victoria since April 2021, despite 129 of 137 regional suburbs reporting a higher median house price than a year ago. The constant threat of further COVID-19 lockdowns, unemployment levels resulting from 2020 lockdowns and a slow Covid vaccine rollout are all taking their toll on the market and causing seller hesitation.
One thing is certain, with remote work becoming more common, low interest rates and a steady economy, those comfortable to take the leap in 2021 may just reap the rewards.
If you want to know how your suburb is performing or the value of your home, contact the team at Stockdale & Leggo Phillip Island on 5922 9300 or Stockdale & Leggo Koo Wee Rup on 5997 1899.