Rise in the property market despite the COVID-19 crisis
April 8, 2021
Despite the harsh impacts of the pandemic, housing values across Australia have not only remained afloat, but have reached record highs.
AMP Capital’s chief economist, Shane Oliver predicts a 5 per cent rise in home prices in 2021 amid record-low mortgage rates, government home buyer incentives and income support measures (The Adviser Magazine).
With a significant decrease in interest rates and new government schemes, both have played an important part in making new home ownership in the post-COVID-19 environment more achievable for individuals and families. The demand during this time was driven by first-time buyers taking advantage of 2020’s pandemic-induced dip in values.
The increase in property prices this year has had an affect nationwide, with every capital city and their surrounding regions recording a rise in housing values, ranging from a 2.3 per cent across Darwin to a 0.4 per cent rise in both Sydney and Melbourne.
CoreLogic’s January Hedonic Home Value Index showed that home values continued to ascend through January 2021 to a new high. With the median home value reaching $583,157 during the first month of this year.
The rising prices are a result of record-low mortgage rates, a strong economic recovery and the fact that buyer demand is very strong against relatively low levels of supply. The value of lending to investors was up 14.1 per cent in the December 2020 quarter compared with the September 2020 quarter. To be able to ease this rapid growth in the housing market there would need to be restrained lending conditions or higher levels of supply are needed.
Our team is primed to support you.
As the needs of home buyers shift, while interest rates are at record lows and the market is replete with government stimulus packages, our Gow-Gates Financial Services Team can offer unique opportunities and solutions to guide you through the mortgage process.
With increasingly different terms and conditions, credit criteria and low interest rates than ever before, our expert mortgage brokers have the analysis, market knowledge and understanding to make the mortgage process seamless and simple.
We are well positioned in the financial and mortgage market to help you compare your current rate and ensure you have the best rate with a loan that suits and is tailored to your needs, to protect and grow your wealth.
Please contact our Mortgages Brokers for further information.
Head of the Mortgage Broking Team