Residential Property Market Forecasts for 2021February 5, 2021
2020 was a rollercoaster ride for everyone to say the least. In the property market space, we’ve seen low house prices and mortgage rates. Physical house tours also became a thing from the distant past. Many home buyers put their plans to a halt due to the uncertainties brought by the COVID-19 pandemic.
Entering 2021, much has improved with the development of vaccines and fewer cases in Australia. Although the threat of a new variant is there, experts are hopeful that Australia’s economy will rebound in 2021. But what does it mean for the property market? In this blog, we drill down expert forecasts and trends, so you’d know what to expect in the housing space this year whether you’re a real estate agent or a home buyer.
Rising residential property prices
Based on an outlook released by the fund manager firm Trilogy, there is an increase in residential property prices, and substantial gains are expected in 2021.
SQM Research’s December 2020 report supports this outlook, saying Australian dwelling prices are expected to soar 5.0% to 9.0% throughout 2021. Perth is predicted to lead this growth with 8% to 12% forecasted increase, followed by Sydney with 7% to 11% and Adelaide with 6% to 10%.
SQM’s Managing Director Louis Christopher said this growth might be attributed to the upcoming updates to responsible lending laws and with improved customer confidence.
Government support to aid housing recovery
Christopher said the government’s JobKeeper program would be an excellent supplement to the ongoing housing recovery efforts, significantly if it will be extended beyond March. The said program helps Australians keep their jobs and supports businesses affected by the downward economic trend due to the COVID-19 pandemic.
The National Australian Bank also said that although there are challenges in the labour market in 2020, strong government support has helped prevent the rise of unemployment and its impact on household incomes. So, the housing prices likewise remained manageable. Housing support made everything bearable in the year 2020
But should the government decide not to extend the JobKeeper program, SQM Research said national dwelling prices would remain stable and even increase by up to 4%. However, Melbourne and Hobart may face house pricing decline.
Different demand for prime residences
Early 2021 seems like an opportune time to buy a home, before the surge in housing prices hits. The mortgage is also expected to remain steady as the Reserve Bank of Australia assured the public that the rates wouldn’t increase until both inflation and employment are within the target range. Achieving the target inflation and employment rates is unlikely to happen within the year.
With the coronavirus still around, settling in a home that’s comfortable, secure and has green spaces for your overall well-being is also a plus for your peace of mind. So if you’re thinking about getting one and having your money and requirements all set, why not contact a home and land provider today and talk about you fulfilling your dream home today
Wondering if it’s time to buy a new home?
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