Housing Industry News - July 2021
Australia’s house prices continue to increase as the end of financial year concludes.
Property prices tipped to continue to increase into 2022
Property prices have continued their price growth in recent months with prices forecasted to continue to increase as the Australian economy’s stronger than expected performance continues, with demand outweighing supply for detached houses. Angie Zigomanis, director of Charter Keck Cramer’s research and strategy team, states “prices in Sydney and Melbourne could rise by another 10 per cent over the next 12 months”.
?Zigomanis forecasts that prices would remain robust for at least 12 months, he says with Melbourne’s economy traditionally highly dependent on migration growth, not only overseas immigration but also people relocating from other states. Prices in regional areas also climbed with many working from home in the wake of the coronavirus pandemic who are seeking a lifestyle change and affordable housing. [1]
?Detached dwelling approvals break another record in April
The month of April 2021 has reached a record high for the third consecutive month with detached building approvals staying strong. The unprecedented volume of building starts will continue to occur in 2021 due to the HomeBuilder and low interest rates which has facilitated the demand for detached homes. According to HIA, Economist, Angela Lillicrap we will see a record number of detached homes continue being built this year and into 2022. HIA further notes, detached housing approvals increased by 14.8 per cent in the three months to April 2021, to be 63.7 per cent higher than the same time last year. [2]
?Supply and demand
With the financial year concluding Australia’s house prices continue to surge into winter. CoreLogic estimated that more than 580,000 properties changed hands last financial year, also the highest number since early 2004. Pre-COVID peaks reaching uncharted territory as record-low interest rates fuel an increase in buyer demand that current volumes of homes for sale cannot satisfy. CoreLogic's head of Australian research Eliza Owen said a combination of strong demand, fuelled by a recovering economy and ultra-low interest rates, with low levels of stock coming onto market for sale, resulted in the extreme price rises. [3]
?I look forward seeing more positive news over the next few months.
?Stay safe, stay positive.
?John Goris
领英推荐
Director and CEO
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References:
?1.???????The Age – [ONLINE] 08/06/2021
2.???????HIA Media Release – Detached dwelling approvals break another record in April [ONLINE] 01/06/2021
links.hia.com.au
3.???????ABC News – [ONLINE] 02/07/2021
https://www.abc.net.au/news/2021-07-01/house-prices-keep-surging-in-winter-lockdowns/100258068