The Australian housing market is still going strong, with values continuing to rise, recording a growth of 1.5% across the board in August.
The rate of growth does seem to be slowing down a little which has more to do with the worsening affordability constraints than ongoing lockdowns.
Housing prices have risen more than 10 times faster than wages growth over the past year, unfortunately creating a more significant barrier to entry for those who do not yet own a home. For first home buyers, there are a number of government incentives available to assist with the purchase of their first home, click here for more information.
In early May, newly advertised properties were tracking 19.7% above the five-year average, however, due to both lockdowns and some seasonal factors, the number of new listings through August dropped to 5.8% below average. Total active listings were close to 30 percent below average but the number of home sales remain 30% above average. This disconnect between advertised supply and housing demand is keeping upwards pressure on housing prices, despite the challenges faced by both buyers and sellers.
With spring season starting, we can expect to see an uplift in advertised property and demand, in particular when lockdowns are starting to be wound back.
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