During the first three months of 2021, the value of Aussie homes has reached an impressive growth, going up 6.8 points and recording an all-time rise compared to the numbers seen in the past three decades. Plus, the value of Down Under housing has gone up by almost 2 percent during the month of April 2021 alone. Nonetheless, a slight drop in the auction clearance figures compared to the previous months is clearly visible. This is a direct result of the post-Covid19 boom that the Australian property market had been subject to. What does this mean for the Aussie home buyer in 2021? Shortly put, it's bad news. If you are in the market for a new property, brace yourself for some rather painful auctioning and, better yet, arm yourself with a lot of patience and a clever buyer agent.
Let's see some more of the interesting highlights of the Aussie property market for 2021.
2021 Australian Property Market: Quick Tips&Facts
Keep An Eye On The Trends
Particular areas such as Sydney and Darwin have recorded significant monthly rises in terms of housing prices, so if you are trying to save some money, you may want to steer clear from them and opt for places like Perth instead. Perth has recorded the least significant growth from all capital cities, set at only 0.8%. Plus, the city is home to the famous Crown Perth Casino, a wonderful entertainment hub open 24/7 for the gambling aficionado. The luxurious hotels, bars, and theatre you can find here are also excellent attractions for those of you searching for more reasons to move here. In the meanwhile, you can keep practicing your casino skills at some of the most prestigious and rewarding gaming hubs targeting players from the land Down Under.
Brisbane, Sydney, and Melbourne continue to remain some of the most expensive cities to consider living in. The rise in housing prices will only keep affecting people's ability to afford new homes here, and one culprit would be the limitation of fringe housing development in urban areas.
Know What The Predictions Say
According to Commonwealth Bank of Australia predictions, the housing prices will continue to rise and reach a 16% growth in the upcoming two years, as a result of the boom that the market will keep being subject to. By the end of 2021, the estimated growth in the prices will increase by 9% in 2021 and an additional 7% in the following year. Compared to the housing market in the UK or the United States which are heading straight into boom periods, the Australian housing market has faced a tremendous increase in its demand for housing. This occurred at the end of the regular buying season and the desire not to miss out is one of the main reasons that would explain this situation.
Get Ready To Compete For Your Dream Home
Australians are now getting approval for home loans at extremely affordable mortgage rates that some could consider historical. This automatically means that prospects in the market for a new residential home should prepare themselves to face some harsh competition, given the rather small and extremely limited number of available homes up for sale.
People looking to invest in their first home appear to be responsible for this large number of demands. Plus, the fact that the country has done a wonderful job at responding to the Covid-19 pandemic is another important element that has lead to the rise in housing demand. We can also mention the smaller number of properties for sale here, the general feeling of optimism when assessing the state of the economy, and the reopening of businesses as additional arguments.
The Australian government has also done a great job at giving out incentives to stimulate buyers, with special emphasis on first-time home buyers and owner-occupiers. The fact that people are regaining a more and more increased sense of living a normal life once again also has a huge contribution to the current state of things.
All in all, the Aussie residential housing trends are similar to those of the American or English markets, with work at home options enabling owners and renters located in regions with dense populations to relocate to smaller towns and suburbs whenever housing opportunities become available.