As anyone that has considered entering it knows, the ebb and flow of the Australian property market, just like property markets around the world, is notoriously hard to predict. Even in the face of extreme conditions, like the onset of a global pandemic, the world of real estate may well perform contrarily to what analysts and moguls foresee.
In Australia, the property market has shown itself to be extremely resilient in the midst of COVID-19, and has provided wonderful opportunities for both buyers and sellers, thanks to government support measures, lower interest rates and high demand.
Even so, prospective buyers and sellers have persistent questions about the property market at any given stage. Although it suffices to say that things can change very quickly, this article offers some advice about what real estate aficionados may see play out in the realm of real estate this year.
If you are considering the purchase or sale of a property, keep in mind that a trustworthy and qualified real estate agent is your best bet on real estate success. If you aren’t sure where to find a good agent, look no further than Perfect Agent’s online agent recommendations. By simply completing a quick questionnaire, we are able to gauge your exact needs and can make recommendations accordingly.
Is it the right time to buy?
Considering the fact that purchasing real estate is likely to be one of the biggest financial transactions you will ever undertake during your lifetime, it makes sense that buying a home is something to think about thoroughly. Of course, every prospective buyer’s personal circumstances are different, and will dictate what the right way forward is. If a buyer has the financial means to purchase a property, that is a good start, but measures brought about by the pandemic may actually have made this requirement more accessible than it has been in a long time.
For example, first-time homebuyers now have access to the Australian government’s First Home Loan Deposit Scheme (FHLDS), which sees the National Housing Finance and Investment Corporation guaranteeing 15% of each home loan that is approved by one of 27 participating credit lenders. This means first-time homebuyers will be able to purchase a property with a deposit of as little as 5% – something that has significantly expanded the pool of buyers that are vying to buy property at the moment.
While property prices across the country have also shown significant growth – something which means that buyers are likely to spend a little more on property now than they might have a year or two ago – other reforms and stimulus packages have made the decision to purchase very appealing.
If you are thinking of buying, it’s worth speaking to an experienced real estate agent in your city or suburb to see what properties are within a range that is affordable to you.
Is it still smart to buy near the city?
There has been a noteworthy increase in interest in regional properties, with migration from the capital amounting to 11,200 people in the latest ABS report on migration. Many people seem to be considering a move to the countryside, as remote work means they don’t have to head into the office every day.
This may leave prospective buyers wondering whether it is still a smart decision to buy a home near the city.
While it goes without saying that property in the city is generally more expensive when compared to similar homes in regional areas, it can still remain a good investment to buy a house in one of the country’s capital regions.
Even if tourism has taken a big knock from the effects of the pandemic, it stands to reason that there will likely always be people who specifically want to live in metropolitan areas instead of in the countryside. Inner-city suburbs have also shown consistent growth over the past couple of years.
If you are considering purchasing a home in the city, speak to a real estate agent who works in this area to find out what options are available to you, and what the growth forecast and trends for the particular suburb you are considering look like.
Is the market rebounding and what can we expect in 2021?
2021 has already shown immense promise insofar as the Australian property market is concerned. Consumer information company CoreLogic’s latest Home Value Index shows that the local real estate market is showing notable value growth, as it has done for the past few months, with March 2021 showing the largest price gains in 32 years, and a total price increase of 7.2% over the past year.
Steady growth has been the name of the game over the past few months, and there are no immediate signs of this trend slowing down. It’s fair to say that the Australian property market is indeed showing signs of a rebound, but interested buyers and sellers should also remember that this change has come very quickly, and that market conditions can always change again. In fact, it’s fair to assume that they will ultimately change again – this is the nature of the real estate market.
For the time being, though, the property market in Australia has been doing very well in the face of the unique challenges brought about by the pandemic. 2021 looks to be a good year for real estate in Australia, with further price increases expected.
What regional areas have had the highest price growth?
As mentioned earlier in this article, regional areas have also shown good growth, as people increasingly make the decision to leave the city for a quieter life in the countryside. Some regional areas have shown exceptional growth over the past few months.
In New South Wales, a growth analysis by a prominent local real estate listing website revealed that Richmond – Tweed (6.3%), Coffs Harbour (8.7%) and the Mid North Coast (8.3%) have been among the biggest regional winners in this area.
North West Victoria (4.1%), Ballarat (4.8%) and Warnambool and South West (5.8%) have shown the most growth in the state of Victoria, while Wide Bay (3.1%), Gold Coast (3.2%) and Townsville (3.8%) have come out on top in Queensland.
Outback (4.7%) and South East (1.3%) in South Australia have been South Australia’s regional front runners, and Tasmania’s Launceston and North East (4%) and South East (2.1%) have also shown good growth. In Western Australia, Wheat Belt (a whopping 11.7%), Bunbury (5.2%) and Mandurah (2.2%) have been the top regional performers in the state.
Should I sell now or wait?
Home sellers are always curious to know whether growth trends like the ones mentioned in this article are likely to continue, and whether holding onto their property just a little longer has the potential to yield even larger financial returns.
Deciding to put a property on the market depends on a host of factors, not least if the home seller is in the right financial position to sell their current property and purchase another. In this regard, sellers should consider where they are planning to purchase their new home, as well as taking into consideration the many hidden costs associated with the sale of a home.
However, seeing as property prices do look to benefit home sellers now, it certainly isn’t a bad time to talk to a trustworthy, qualified and experienced real estate agent about the options that are available to you. Using a comparative market analysis, your real estate agent will be able to make a rough estimation of what your property might sell for in current market conditions.
Whether a person is interested in buying or in selling a home, market conditions are often at the top of the agenda. Because market conditions have such a big influence on the price a home ultimately fetches, it has implications for buyers and sellers alike. The fact that the real estate market is notoriously difficult to predict doesn’t help, of course, but this doesn’t mean that a look back at the past few months doesn’t give one a good indication of how the market is likely to perform in the next few months. Deciding to buy or sell will certainly depend on the personal circumstances of the person who is considering it. A number of things will need to be considered, from whether it’s better to buy or sell in the city or the countryside, to whether it is the right time to buy or sell.
Regardless of whether you are a prospective buyer or seller, the services of a real estate agent that has been doing business in the area you are planning on buying or selling in is perhaps your greatest asset on any real estate journey. Contact Perfect Agent today to find an agent you can trust with this significant financial transaction.