Forrestfield 
Will we see PROPERTY PRICES rise in 2021?
There’s probably not a single person who made accurate predictions about the rollercoaster ride that was 2020 and while it’s impossible to know for sure what’s still around the corner, 2021 is shaping up to be a good year for property.
House prices across the country are set to continue on their path to recovery after seeing declines through last year, as Australia came to terms with living through a global pandemic.
From April to September 2020 there was a 2.1 per cent drop in home values, according to CoreLogic data.
Property prices have been rising steadily in the months since however, and if it continues at the same rate then we could see property prices climb higher than pre-COVID levels within the first few months of 2021.
ANZ economists have forecasted that prices will rise by 9% across Australian capital cities over the year.
There will be differences in price movements across states and housing types, however.
Melbourne, for example, may lag behind the other states due to its prolonged lockdown. However, it has seen a strong bounce back in activity since the city opened up.
FOMO increasing amongst buyers
Government incentives and historically low-interest rates have helped keep buying activity strong, and it’s showing no signs of slowing down.
Throughout the country, a lot of people are seeing the benefits of getting into the property market.
First homeowners have the advantage of not having the competition from investors and overseas buyers like they used to, and there is also generous government grants such as the HomeBuilder scheme that makes getting into the property market that little bit easier.
With things like international travel and other activities being off the cards, a lot of people have also been using time during the pandemic to save more than they might have otherwise, with many people choosing to funnel these savings towards a home purchase.
A good time to sell
There’s little doubt that buyer interest has been strong, but sellers have been more subdued than usual lately, possibly due to not wanting to sell during a pandemic.
Low inventory has been helping to prop up prices though and those that have sold have done well.
More sellers may choose to get into the market as property confidence grows, however prices are still expected to climb, with fears from some that the market could even get too over-heated thanks to crazy low-interest rates.
No reason for buyers or sellers to hold back
If you’re in the position to buy or sell right now then there’s no time like the present.
For buyers, you will do well to get in while there is so much stimulus still around and before property prices get too high.
As for sellers, if you were thinking of upgrading your home then it would be wise to get in sooner rather than later if you suspect prices in your neighbourhood to rise.
That’s because while you might benefit from a 5% price rise at your current home over time, you will also have to pay an extra 5% on a more expensive home, which can see the price of your transaction inflate significantly.
If you’re after advice on what is best to do and when to make your move then don’t hesitate to get in touch with your local Professionals Real Estate office.
