As we enter May, the housing market in every state capital continues to surge. A combination of increased consumer confidence, record low-interest rates, low stock rates and the all-consuming fear of missing out has sent buyers into a frenzy. Buyers want to stake their claim in a market that to date has shown no signs of slowing.
CoreLogic has just released a report indicating that during the March quarter, the Australian property market grew at the fastest rate in thirty-three years. However, Head of Research, Tim Lawless, predicts that “the pace of capital gain will gradually taper over the coming months. There has been a marked lift in new listings coming to the market relative to prior years”, he said. As more vendors take advantage of the strong selling conditions, Mr Lawless suggests that there will be a “rebalancing between buyer and sellers”. In addition, there are fewer government-stimulus measures now available, as well as affordability constraints.
Despite this prediction, most experts and economists from all major banks suggest that housing values will continue to rise through 2021 and into 2022, although not at the same unsustainable growth rate.
CoreLogic also released their Rental Review for the March 2021 quarter this week. It showed an increase in rental rates of 3.2% on average, with Darwin and Perth driving much of this increase.
Download and read the full Market Essentials – May 2021 Report.