Terms & Conditions
1. Low-interest rates
Low-interest rates are facilitating change from all types of prospective property buyers, many of who are starting to experience FOMO (fear of missing out) and are pushing prices higher and higher.
Australians are upgrading their living situation and it’s creating a surge in demand.
Whether it’s established homeowners moving to better or bigger accommodation, other homeowners upgrading their lifestyle to a 20-minute neighbourhood or regional location further away from the city, baby boomers moving to family-friendly townhouses or apartments, or even tenants upgrading to become owner-occupiers.
2. Rising consumer confidence
The combination of improving economic conditions, increased jobs security plus the sense that we’re getting Covid under control is lifting consumer confidence, which in turn has created continued strong demand for housing. And as we already know, high demand leads to high prices.
3. Supply versus demand
Buyers are snapping up properties faster than vendors can list them for sale at present which puts further pressure on prices. This fast ‘rate of absorption’ is keeping the advertised housing supply at extremely low levels: CoreLogic’s stats show that despite the rush of new listings, the total number of homes advertised for sale remains roughly 24 percent below the five-year average.
“Advertised supply remains well below average. This imbalance between demand and supply is continuing to create urgency among buyers.
4. Pent-up demand
Not only is it t just general supply versus demand issues that are causing the property market boom.
Buyer demand is particularly strong at the moment because it has been pent up for a number of years.
In 2020 Covid held back home buyers who sat on the sidelines waiting to see what would transpire, in 2019 the upcoming Federal election scared off many buyers, and in 2018 the Haynes Royal Commission and worries about finance distracted home buyers and investors. This means there are plenty of buyers who have been sitting on the fence waiting for a reason to either enter the market or take the plunge and upgrade and the current markets as well as the media hype have given them the excuse they’ve been waiting for. At the same, the surprising surge in property values is creating FOMO (Fear Of Missing Out), which is driving those buyers to make a move all at once.
5. Demographic changes
Changes in demographics, the structure of family life, and what we want out of our home also shifted during the height of pandemic lockdowns. As an example, the migration from southern states to Qld has created not only massive growth but additionally now a shortage of rental properties available for tenants. Causation of this was not only due to the current Covid-19 outbreaks in NSW and Vic but also the natural “retirement” migration to spend later years in warmer climes.
