Market Essentials - February 2021

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Market Essentials - February 2021

As we enter 2021, the real estate sector, predicted to crash and burn in 2020, is stronger than ever. Despite the ‘mortgage-holiday’ expiring in March 2021, experts predict that demand will remain at elevated levels, with more investors expected to return to the market.

Whether it was working from home, home-schooling or ‘lockdown’, the pandemic changed forever what buyers are searching for in a home. Buyers are now looking to regional and coastal areas for their next forever home or rental, and ‘study’ was the most searched keyword on realestate.com in the second half of 2020. Buyers and renters will prioritise work from home spaces and properties with flexible living spaces in 2021, in the event another lockdown is on the cards.

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What happens if rates go below zero?

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What happens if rates go below zero?

Even before the advent of COVID-19, Reserve Bank governor Philip Lowe told Federal Parliament’s Standing Committee on Economics that the RBA was prepared to do “unconventional things” to kick-start a flailing economy. The RBA cut rates to an unprecedented 0.25% in March this year. At its meeting this week it lowered its cash rate target to 0.1%. That is very close to zero - is it possible for rates to go negative?

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Market Essentials - December 2020

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Market Essentials - December 2020

On December 1, 2020, with almost all state borders reopening, the real estate rebound is expected to continue. While experts predicted doom and gloom for the market throughout this unprecedented year, it seems that nothing can stop the real estate juggernaut as 2020 draws to a close.

ABS data shows that owner-occupier lending has now hit an all-time high. Westpac Chief Economist Bill Evans also predicts that the market will consolidate its losses between April and June 2021, with the market tipped to accelerate and expected increases of around 15% over the remainder of next year.

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Is COVID-19 leading to a regional housing boom?

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Is COVID-19 leading to a regional housing boom?

Amidst the tumultuous times of the current COVID-19 pandemic, we have seen numerous changes in the economy. Unemployment is at a record high, yet there has been a surge in the property market as people move to take advantage of lowering interest rates.

But rather than looking for properties closer to urban areas, housing market data has indicated that there is a rising demand for properties in regional markets of Australia.

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The first home loan deposit scheme - what happened?

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The first home loan deposit scheme - what happened?

At the start of the year, the Australian Government launched the First Home Loan Deposit Scheme as an initiative to support eligible first home buyers to purchase their first home sooner.

Usually, first home buyers who have not met the 20 per cent deposit need to pay lenders mortgage insurance. Under the Scheme, however, eligible first home buyers can purchase a modest home as long as they have a deposit of five per cent or higher (this is subject to lenders’ criteria).

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Market Essentials - October 2020

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Market Essentials - October 2020

Despite phase one of the Federal Government’s Covid-19 stimulus coming to an end this month, there’s been a positive turn in housing market sentiment. Consumer confidence has increased, and according to Core Logic, new listings rose, with six of the eight capital cities recording a rise in home values over the month.

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