One of the biggest trends that we've seen across real estate markets in the last six months is that property is selling faster than ever. Without a doubt, the Australian property market is performing at levels never seen before. It's even reached a point where demand is out-spacing supply.
At the beginning of the year, house price were predicted to see significant increases throughout 2021-22. With this, more people have been eager to enter the Australian property market! As a result, real estate has been selling faster than ever. In fact, a Hotspotting report released by Terry Ryder, stated that in May the average time that a house was on the market was 32 days.
Over the last 12 months there has been a decrease in the total number of property listings. Property expert, Michael Yardney stated that there was a 12.1% decrease in the total number of property listings during this time. While every capital city has seen a reduction in their number of real estate listings, the most affected cities were Canberra, Hobart and Brisbane.
Mass incentives
There has been a significant shortage in property and land supply as more Australians are buying a house. One factor that has contributed to this is the mass incentives and stimulus measures being offered by Federal and State Government's. This is especially relevant for first home buyers who are able to receive the first home buyers grant.
Low home loan rates
Another trend contributing to the high demand for real estate is low home loan rates. Since the middle of the pandemic, the Australian Government have remained committed to supporting the economy through the rollout of various stimulus measures; including a significant reduction to the cash rate. This has led to lenders following pursuit and slashing their home loan rates.
With mortgage repayments lower than ever, many Australians are opting to buy their own property. In some instances, the cost to buy property is even cheaper than renting (in certain locations).
What's next?
As the fear of missing out on the opportunities within the current Australian property market increases, it's predicted that property will still remain a hot commodity for some time. As property prices are expected to increase in 2021 by 15% and another 5% by the end of 2022, more Aussies are expected to take advantage of real estate markets while they can.
More Australians are expected to continue buying in remote and outer-suburb locations. This momentum is predicted to continue as the convenience of living in these typically unsustainable locations takes a sharp turn. In fact, more Australians (particularly millennials) are opting for remote living as working from home commitments become increasingly desirable.
Don't miss out on buying a house
If you've been thinking about doing something to benefit your financial future, but are unsure on where to start, reach out! We're assisting a record number of investors and first home buyers with buying a house that can later be utilised to generate wealth.
Our property acquisitions team is researching property markets right across the country to source the best property for our clients. They're doing their part with obtaining emerging opportunities and securing them as quickly as possible so that no one is missing out. Act now, and contact our team on the details provided.
Ph: 1300 130 932
Email: clientservices@reif.com.au
