CoreLogic’s National Housing Data Report released this morning shows property prices rose 2.2% last month, continuing the current property surge across Australia
That’s an amazing $400 per day for every day this year…or $2,800 per week!
The scary part is the Banks are forecasting further increases of 20%+ over 2021 and 2022…
The best time to buy an investment property is as soon as you can afford to buy one.
Mr Lawless reaffirmed the fundamentals driving strength in the housing market remain in place. “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. At the same time, advertised supply remains well below average. This imbalance between demand and supply is continuing to create urgency amongst buyers, contributing to the upwards pressure on housing prices.
“Despite the consistently strong headline results, the underlying trends have shifted over the past year,” Mr Lawless said. “The most expensive end of the market is now driving the highest rate of price appreciation across most of the capital cities, whereas early in the growth cycle it was the most affordable end of the market that was the strongest.”
With housing sales activity continuing to outpace the number of new listings added to the market, the total number of homes advertised for sale remains approximately 24% below the five-year average.
Overall, Australia’s housing market remains firmly entrenched in a housing boom across most regions of the country. The reduction in federal government fiscal support seems to have had little to no impact on housing demand or growth in home values to date. While future COVID outbreaks presents both a health and economic risk, the strong recovery in the labour market has likely mitigated the impact that the wind-down in JobKeeper would otherwise have had on the housing market. Housing values are still currently rising faster than the peak rate of growth in recent cycles.
CoreLogic’s Report can be found here: https://www.corelogic.com.au/news/australias-housing-boom-rolls-national-home-values-lifting-another-22-may?utm_medium=email&utm_source=newsletter&utm_campaign=au-res-hvi-2021-jun
