Housing prices across the country accelerated through to the end of the financial year, as a combination of ultra-low interest rates, strong consumer confidence and low supply drove prices to their highest levels ever seen.
Sydney’s property market is one of the hottest in the world with house prices soaring on average by $1,220 a day. There’s no sign the markets are about to cool any time soon as the economy gathers speed and the Reserve Bank remains committed to record-low interest rates for years to come.
For the year to 31st of July, Sydney’s average house price grew by a staggering 18.2 per cent. To put this into dollar terms, since the start of the year, median property values have grown by $34,200 a month, or $8,550 a week.
CoreLogic’s research director Tim Lawless said a perfect storm of influences was driving up prices. “The combination of improving economic conditions and low interest rates is continuing to support consumer confidence which, in turn, has created persistently strong demand for housing,” he said. “At the same time, advertised supply remains well below average. This imbalance between demand and supply is continuing to create urgency among buyers, contributing to the upward pressure on housing prices.”
The strong market has resulted in the number of days a property remains up for sale falling to an all-time low of fewer than 30 days. A continuing issue for buyers (and a boon for sellers) is the low number of properties on the market. Mr Lawless said the total number of properties up for sale is about 24 per cent below its long-term average.
AMP Capital chief economist Shane Oliver said home prices could climb another 10 to 15 per cent by the end of 2022. He went on to say that “the fundamentals of still ultra-low mortgage rates, ongoing government incentives, broad economic recovery, the strong jobs market and FOMO [fear of missing out] point to further home price increases ahead”.
At the Goldman Brothers our advice is that if you are considering selling in the near future now is a great time to get the ball rolling. Start with a confidential appraisal of your property’s current value, something we are more than happy to help you with.
‘Perfect Storm’ by By Shane Wright and Jennifer Duke – SMH
CoreLogic – Reports
- Posted by The Goldman Brothers
- On August 4, 2021
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