House sellers continue to benefit as the property buying frenzy persists across the country. Meanwhile, leading economists have predicted that interest rates could start to increase as early as November 2022, well ahead of the RBA’s 2024 timeline.
Forward indicators predict a tightening labour market, increases in wages and inflation as early as mid-2022. Combined with the current ‘cheap credit’ on offer and the fastest month-on-month growth in the property market in 33 years, many buyers may soon find higher interest rates beyond reach.
Auction results for the end of June are predicted to falter slightly due to increased housing supply and new Covid-19 restrictions across several capital cities. Nevertheless, the current boom continues, with properties selling well over the reserve and records continuing to tumble.
Many property owners have made a profit by reselling their homes in 2021. New research from CoreLogic found that 90.3 per cent of homes sold in the March quarter made a profit.
CoreLogic also found that units were more than twice as likely to sell at a loss than houses, with owner-occupiers enjoying a higher incidence of profitability than investors.
Download and read the full Market Essentials – July 2021 Report.