What's Happening In The 2021 Market?

It’s no secret that the property market has been booming in 2021. But now that we’re coming to the middle of the year (and the end of the financial year!) now is a great time to reflect on how the property market has developed into its current state.

 And maybe even give some thought to where it may be heading. 

A myriad of unique conditions have led to the market we see today. First home buyers are taking advantage of record low interest rates in order to enter the market, with Ratecity reporting that over one third (36%) of homeowners fixed their mortgage rates in the past 12 months. And investors aren’t passing up the chance to secure these rates for themselves.

This opportunity coincides with Australia’s relatively quick economic recovery from the Covid-19 pandemic, including employment rates bouncing back to figures equal to, or even better than, pre-pandemic levels. Where the pandemic has seen many lose faith in the security of their shares and stock investments due to volatility, particularly that of overseas markets, Australians are turning to property instead. 

Furthermore, the announcement of the 2021 financial budget last month, which featured additional changes to the homebuilder stimulus package and homebuyer benefits, has only added fuel to the flames of an already hot market. 

Experts advise that although the market is predicted to remain strong over the foreseeable future, the best may be coming to a close in terms of property price growth. 

What factors could contribute to the slowing down of the market over the coming months, or even years? 

Firstly, the longer that international borders remain closed, the greater the risk that buyer demand for homes will slow. And of course, we’ve already seen a number of Australia’s big banks hiking up their interest rates once more, with the last 4 year fixed interest rate loan under 2% disappearing earlier this month. 

Additionally, experts are noticing growing apprehension from buyers warned against taking on risky levels of debt due to surging property prices.

So, what’s our advice? With buyer demand being so strong this winter, and with early indicators pointing to a cooling market, there’s no need for vendors to wait until spring to sell this year, as is often the case.

So if you’re thinking of selling, call our office to discuss the benefits of selling this winter. We’d love to hear from you to discuss your property, and what it has to offer buyers in today’s unique property market. Additionally, if you’d like to hear more about the current property market and relevant market news, be in touch with one of our agents. With a wealth of knowledge and experience in the local market, we pride ourselves on staying ahead to deliver our clients the best results possible.