Australian Real Estate in 2021: What’s the Property Market going to be like this year?
If you’ve been thinking about selling or buying Australian property, then 2021 is looking to be the perfect storm of conditions!
How do I know?
Well, there are a long list of predicted factors that are going to significantly impact both buying and selling across the country this year.
As a Buyer’s Agent, I’m already seeing the different behaviours and conditions in the market right now. In fact, I’ve been asked by all of my clients about what I think 2021 will look like for Australian real estate.
So, here’s my answer!
My predictions for local property market conditions in 2021
1) Demand for homes won’t drop
From all that I’m witnessing in the market first-hand, combined with what I’ve been seeing and reading in the news, property demand is predicted to soar and be more consistent than ever this year for real estate in all locations, of all shapes, sizes and configurations.
2) Record low-interest rates mean loans are affordable
The Reserve Bank of Australia (RBA) has set the interest rate at an all-time low of 0.1%. This will flow on to lenders and means that mortgages will become more inexpensive, opening up more opportunities for people to borrow, to buy.
3) The RBA predicts low rates for 3 years
The RBA also predicts this incredibly low rate to remain there for around three years. This provides so much consistency and predictability for the property market, creating a lot of confidence for buyers.
4) Credit assessment processes are easing
After a tightening of restrictions a few years ago, the bank’s credit assessment policies are starting to relax which means they are more willing to lend to more people, faster.
5) Expats are returning home and they have money
In light of the COVID-19 pandemic, expats are deciding to return home to Australia – and they’re coming with lots of cash. With all that wealth, they are looking to purchase a home here to either settle down or for investment purposes. This means they are entering the property market, and they’re serious about buying.
6) Buyers who waited in 2020 are all here in 2021
COVID cancelled a lot of plans for people – including home-buying plans. Now that the pandemic is beginning to slow down in Australia and restrictions are easing up, people are starting to pick up where they left off – continuing their plans to buy a home.
7) Lower stock, higher competition
You know what they say in economics: when supply is low, prices go up. Currently, fewer people are selling homes, which means this surge of buyer numbers is creating a lot of competition, all of whom are out to find the best deals.
8) People generally have more disposable income
Due to COVID, a lot of people haven’t been going on holidays, shopping or eating out. This means they have saved a lot of income that they’re now considering putting towards investing in properties.
9) People are upgrading their homes to accommodate remote work
While last year, working from home was essential due to lockdowns, remote working has now become more of a norm. Because everyone has been spending a lot more time at home than ever before, people are starting to consider looking at upsizing or buying properties that are more accommodating and comfortable to suit this lifestyle.
10) Higher buyer and investor confidence
The property market has faced so many ups and downs in previous years. Whereas this year, home buyers and investors have gained a lot more confidence around purchasing. This is due to many of the above factors, together with government incentives and a general healthy prosperity across the states.
This is why you need a Buyer’s Agent now more than ever.
Does it sound like a big year for property? Absolutely!
While there are exciting times ahead, you’re also going to be up against a lot of competition. That’s why you need a professional and experienced Buyer’s Agent by your side.
My team at Worth Property Investing are passionate about helping you make the right purchase, in the right location, at the right time and the right price.
We are your property buying partner, here to support you in making the right property decisions. As your trusted licensed Buyer’s Agents, we do everything from searching, connecting, researching, bidding, negotiating and securing your dream home.
With our skills, experience and passion for what we do, we ensure that you invest in the perfect property that meets all of your goals.
Book in a FREE Strategy Session and start achieving your property dreams.
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Don’t put it off any longer – contact Worth Property Investing today!