Market Essentials - March 2021

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Market Essentials - March 2021

As we enter March, the supercharged real estate market sees prices continuing to surge in regional centres and major cities. Record low volumes in all major centres, low-interest rates and wages growth, falling unemployment and growing confidence have led to the perfect real-estate storm.

After an initial downturn, all capital cities are bouncing back, resulting in record-high prices since January. Regional prices nationally have risen by 6.5 per cent.

Many would-be buyers now realise that renting may be their only option, and, as investors prefer to put their money into property instead of the bank, the boom is expected to continue. Market forecasts are for house prices to increase between 5 and 10 per cent for each of the next two years.

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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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How first home loan deposit scheme placements will affect the market

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How first home loan deposit scheme placements will affect the market

Republished from Michael Matusik.

Whilst most of the housing industry applauds another 10,000 new federal government first home loan deposit scheme placements, some of us continue to shake our heads.

How did come to this, when it seems okay to place the top loan threshold for a first home buyer at $950,000!

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