Home Insights 10 property market records set in 2021

10 property market records set in 2021

by admin
0 comment

In 2021, strong demand, low supply and low interest rates combined to raise prices at the fastest pace in more than 30 years.

While the number of $ 3 million club suburbs has tripled, price increases, views per list, days on the site, and weekly pre-sales all set new records.

The following counts down the property records set for that year. .. ..

10. Mortgage rates have reached historically lows

Low interest rates and near-zero real mortgage rates have spurred record demand for real estate and pushed prices across Australia. Mortgage growth accelerated, with new lending and refinancing to record mortgage commitments.

9. List hits historical lows

Earlier this year, realestate.com.au’s active (total) sales list hit a historic low after a 3.3% decline in June 2021.

However, as the blockade was lifted and restrictions were relaxed, listings increased for the third straight month at the end of the year, and in November, new listings in the capital reached a record high for the first time in 10 years.

December has already proved a significantly different environment than most of the year. The end of the blockade, combined with a phenomenal price increase, gave sellers the confidence to go public.

8. Demand hits record highs

Low interest rates, changing lifestyle preferences, influx of foreigners, shortage of real estate for sale, forced savings, government support measures all Stimulated the desire for Australian property. The above combination not only pushed demand to record highs, but also pushed prices to new highs.

7. Prices have risen at the fastest pace in over 30 years

In the year to November, home prices rose 23% in the capital and surged 30% in the region. Not only was this series of price increases the fastest in more than 30 years, but it was actually the third fastest growth in the first century.

Sydney remains the most expensive market in the long run, but seven-digit searches across the country are a new norm, and the share of searches for properties priced over $ 1 million is record high.

6. Properties sold at record speeds nationwide.

Most of the year, buyers faced fierce competition. The low level of real estate for sale has forced many to make quick decisions and, in some cases, to pay large premiums.

In November, the median number of days a property was listed on realestate.com.au before we sold it was a record low of 30 days.

Local days were record lows in 32 of 88 SA4 regions across the country. November also had record lows in Adelaide, Canberra, the New South Wales and Tasmania regions.

The recent increase in the supply of real estate for sale has cooled some of the extreme competition.

The increase in new listings gives buyers additional options and the pace of monthly price increases has already slowed. This year is really a “seller market” and buyers continue to outperform sellers, but there are signs that the balance may be slowly changing.

5. Sales volume surges

This year’s sales volume reached a record high. In the first few weeks of December, sales volume reached the 8000 mark for the first time, according to PropTrack data.

4. Demand for luxury properties surges

The blockade and delta variants did not match the demand for luxury real estate. Australia’s $ 3 million suburban club doubled again in 2021. This is because the surge in household wealth, strong savings and low interest rates have allowed more people to take on more debt and house prices have risen.

As borders closed and more time spent at home, some reassessed housing needs, including Australians and returning foreigners choosing lifestyle and welfare upgrades. As a result, the pandemic has surged demand for lifestyle and coastal real estate.

Whether working from home in a luxury home or a trapped Australian holiday pad, this increase in demand has led to a surge in $ 3 million clubs.

3. The capital recorded a record net loss

According to ABS data for the March quarter of this year, the capital recorded a net loss of 11,800 people. This is more than double the 10-year average and the largest quarterly loss ever. This was also before the arrival of the Delta variant.

Using telecommuting, many chose to change the sea and trees, and a net of 43,000 left the capital to support the region. This was the largest net influx into the region since the Australian Bureau of Statistics records began in 2001.

2. Demand for real estate in the region surged, spurring record price increases

The region experienced record price increases this year as both regional and interstate net immigrants tend to be above the long-term average. The multi-regional housing market outperforms the multi-capital in terms of rising prices.

It is a well-known fact that real estate demand is sluggish nationwide, but the local market stands out as a unique combination of situations where demand for rural locations is very high. The telecommuting boom has made relatively affordable areas even more attractive.

The pandemic also had a profound impact on lifestyle needs and housing needs, with many seeking more space and larger homes in rural areas.

1. Australian Homes Value Reach Record $ 9 Trillion

The forces outlined above surged the value of Australian homes (and homeowners’ wealth) in 2021.

Australian Bureau of Statistics (ABS) data show that total Australian housing stock has surged about $ 500 billion in the last three months alone, reaching a record high of $ 9.26 trillion.

Not only did government support provide extraordinary cushioning for households, but the increase in the value of non-financial housing and non-financial stocks was just as formidable. In addition, the household savings rate rose from 11.8% in the June quarter to 19.8%. This is a great cushion if the turmoil continues.

According to ABS, total household assets (net worth) increased by $ 590 billion (4.4%) to a record $ 13.92 trillion in the September quarter. This is a 20.2% increase over a year ago and is the largest annual profit in more than 10 years.

With the labor market recovering rapidly and the economy recovering from the delta slump, this asset effect should support a strong economic recovery next year as well. In real estate, this should support upgradeers and transaction volumes in 2022, as many current homeowners have accumulated significant equity gains.

Although the pace of price increases in 2022 is not comparable to the record speed of 2021.

You may also like