As we enter May, the housing market in every state capital continues to surge. A combination of increased consumer confidence, record low-interest rates, low stock rates and the all-consuming fear of missing out has sent buyers into a frenzy. Buyers want to stake their claim in a market that to date has shown no signs of slowing.

CoreLogic has just released a report indicating that during the March quarter, the Australian property market grew at the fastest rate in thirty-three years. However, Head of Research, Tim Lawless, predicts that “the pace of capital gain will gradually taper over the coming months. There has been a marked lift in new listings coming to the market relative to prior years”, he said. As more vendors take advantage of the strong selling conditions, Mr Lawless suggests that there will be a “rebalancing between buyer and sellers”. In addition, there are fewer government-stimulus measures now available, as well as affordability constraints.

The Australian property market is booming. Prices returned to record highs in January and February saw the sharpest monthly increase in house prices since August 2003. Primarily due to record-low interest rates, a strong economy and high buyer demand against very low stock volumes. Analysts are still scratching their heads and wondering where it will all end.

Despite continued market growth however, there are concerns that with the Federal Government stimulus measures expiring at the end of March, the boom may be interrupted. Just what impact the end of JobKeeper, mortgage holidays, and the HomeBuilder grants will have remains to be seen.

Still, with house prices continuing to rise, investors returning to the market and banks lending more easily, the overall impact is likely to be minimal.

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.

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.