Housing Industry News – November 2021
House prices continue to rise with a continued growth on the way.
HomeBuilder sets records in 2020/21
The property market continues to grow from strength to strength as stated in the latest 2020/21 data from the Australian Bureau of Statistics. The size of the HomeBuilder boom has increased due to the detached house commencements in comparison to any previous quarter of year on record. In the three months to June 2021 more than 41,200 new houses commenced construction, this is 19.3% higher than the pre-HomeBuilder record set in March 2000. Furthermore, it is anticipated that this peak in new house starts will remain a record for many years and perhaps decades. We can also see international borders reopening allowing the return of overseas investors, migrants, students, and tourists. [1]
?Melbourne house prices hit another record
As the real estate market closed for 90 days in the third quarter of 2021 due to lockdowns, Melbourne’s median house price has surged further beyond $1 million. Annually Melbourne’s house prices are up 16.8 per cent, rising by nearly $150,000 in just 12 months. With lockdown now over, real estate agents can host in person inspections and auctions once again. Melbourne’s property market continues to show signs of increasing at a rapid rate. Properties are continuing to sell strong and very fast, there is no sign of this slowing down. [2]
?House prices continue to stay strong
According to Domain’s Senior economist Mr Matthew Hassan, investor activity is lifting and are assisting the current property market to continue to stay strong. The bank expects property prices to rise by more than 20 per cent this year, increasing its price forecast yet again as the market continues to boom despite the past lockdowns. Mr Hassan further notes that the property market is increased by record low-interest rates surpassing past price expectations going well above earlier forecasts. [3]
?Regional Land Price Surges
Regional land prices have surged across regional Victoria albeit the state government has cut a $10,000 boost for first-home buyers outside Melbourne. The regional demand is strong especially in Geelong, Shepparton, Ballarat and Bendigo with sea change and tree change driving these regional markets. Some of these suburbs’ massive growth rates were attributed to either the lifestyle or coastal appeal in the area especially due to the pandemic and??the ability to work from home. [4]
?I look forward to seeing the housing market continue to deliver confident results.
?Stay well, stay positive.
?John Goris
Director and CEO
?References:
?1.???????HIA – [ONLINE] 13/10/2021
2.???????Domain – [ONLINE] 28/10/2021
3.???????Domain – [ONLINE] 15/10/2021 ?
4.???????News – [ONLINE] 20/10/2021
Thanks John, we just need to keep feeding the animal.