Welcome to Spring! Traditionally the busiest time of the year for real estate nationwide. Typically, sales and listing volumes both rise from September to November, and while buyer demand and property supply increase over the season, the impact on prices is usually marginal.
As we enter September 2021 however, a large portion of the country remains in lockdown. Demand remains high, but stock volumes are low.
Data from Core Logic shows increasing median prices in most capital cities, quick sales and continuing real estate records, and as lockdowns lift, a robust recovery should follow.
On the plus side, vendor activity is predicted to increase, bringing better listing volumes to market.
Mortgage rates remain low, household savings have grown, and international borders remain closed; these factors point to increased buyer activity.
However, tightening of credit conditions is being discussed, and affordability constraints, due to the burgeoning marketing, are now starting to impact. If these result in a slowing of buyer activity and there is a lift in supply, we could see a rebalancing between sellers and buyers and a more equitable market as we head into 2022.
Download and read the full Market Essentials – September 2021 Report.