Robust property market on the march in 2021 with predicted price increases of up to 10%

The robust property market continues its march into 2021, despite the doom and gloom of economic uncertainty caused by COVID-19 in 2020. According to data released by Corelogic earlier this month, house prices have continued to rise in 2021 with the national home value index up 0.9% over the month of January.  The Australian love affair with property and our buoyed consumer confidence are also reflected in data showing a continued upward trajectory of record new loan commitments through January 2021. (source)   

To further cement confidence, the NAB has confirmed it’s prediction of an increase in property prices by up to 10% in most Australian capital cities for 2021.  The CBA predicted a national average rise of around 9% for houses and 5% for units.

Australian Bureau of Statistics data from December showed first home buyers continued to enter the market at the highest level since 2009, with the number of owner-occupier first home buyer loan commitments rising 9.3%, an increase of 56.6% from the same time last year. (source) 

These figures have been bolstered by record low-interest rates and huge levels of state and federal government stimulus into the sector, most notably the HomeBuilder Grant launched in June 2020. According to CoreLogic’s research, Australian home values finished 2020 3% higher with regional housing values rising by an impressive 6.9%.  (source)

Takeaways:

• House prices and new loan commitments have hit record highs
• NAB chief economist predicts rises of up to 10% in most capital cities for 2021
• CBA predicts 9% rise for houses and 5% for units
• ABS figures show owner-occupier loan commitments rose by a record 8.7% mostly fueled by record low-interest rates and government incentives such as the HomeBuilder Grant.

If you’ve been waiting to get into the property market, don’t delay! There is still time to take advantage of the HomeBuilder Grant and many other buyer incentives. Contact iBuyNew today to see how we can help you purchase your first home or investment property.