There is little doubt that the property market is ‘super’ hot right now, with many properties selling well above the set reserve. It is a very good time to sell and here at Charles L King (CLK) First National we are here to support you whether you are selling, buying or looking for a rental for your or your family or as an investment.
So, what does a hot local property market look like for regional, state and national real estate?
Here are some early March 2021 stats thanks to a recent online article by domain.com.au.
✔️ During February 2021 Australian property values grew at their fastest rate in 17 years.
✔️ Every capital city in Australia saw a rise due to government stimulus, improving post-Covid economic conditions and limited homes on the market.
✔️ National home values rose by 2.1 percent to a median of $598,884 – the sharpest increase since 2013 (CoreLogic).
✔️ Sydney ($717,767) and Melbourne ($895,933) led the charge with Hobart also rising 2.5 percent to $535,994.
✔️ CoreLogic described these figures as “phenomenal” particularly considering we are still working through the COVID-19 pandemic with snap lockdowns an ever and present possibility.
✔️ Both capital city and regional market figures are on the rise for the first time since post GFC times.
✔️ In February home loans hit record numbers for the second month in a row.
Regional Markets Are Outperforming Capital Cities
✔️ Australian Bureau of Statistics Finance and Wealth noted that investors had rebounded an incredible 62.4 percent since, reaching a 20-year low during the height of the pandemic.
✔️ City folk flocking to regional areas from capital cities has bolstered the value of combined regional markets, increasing by 2.1 percent in February compared to 2 percent in the combined capitals.
✔️ Historically, October 2003 was the last significant regional growth period.
Why Are We Seeing Growth?
✔️ Record low interest rates are the main reason, but also better-than-expected economic conditions on the back of multiple, nation-wide COVID-19 lockdowns.
✔️ Investors and homeowners are putting their confidence in bricks and mortar in the regions – why wouldn’t you want to live in regional Victoria!
✔️ A key factor in increased house prices is the current mismatch between supply and demand that is creating urgency amongst buyers.
✔️Importantly, housing affordability will restrain price growth at some point but talks of any property bubble were “premature” – according to CoreLogic.
✔️Auctions – both online and in-person – are attracting knock-out crowds and results with dozens of buyers with a bad case of FOMO (fear of missing out) which is driving prices higher and smashing all expectations, according to Domain.
Where to from here?
✔️ It’s a challenging market for buyers right now with Domain describing it as “not for faint-hearted”.
✔️ Right now the only winners out of a rising market are those who are downsizing or tapping out of a real estate market – Domain again.
✔️However, according to Domain, while low stock levels were making it difficult to find a home, the strong results would eventually encourage more sellers to list their homes.
✔️Domain predicts that until we see new listings that will alleviate the heated conditions in some areas, we will continue to see strong levels of price growth in coming months.
It is certainly an extraordinary time in the real estate market right now and here at CLK we believe it has never been more important to have a good working relationship with your trusted agent to achieve your property goals.
If you’re feeling frustrated as a buyer right now, we understand your pain and we know that’s it’s difficult to navigate the current real estate landscape.
Our CLK Team is trusted and experienced and we are here to discuss your real estate needs at any time. You don’t need any previous connections with the CLK Sales Team to sit down and discuss your options and if you’re considering selling your home, we offer FREE and obligation-free property appraisals.
Call us on (03) 54 822 111 and meet the team here.