The 5-day lockdown over the Valentine’s Day weekend has added fuel to the fire in regard to buyer demand. The fear of missing out was amplified by the sudden inability to inspect property. The biggest driver is coming from those buyers that have sold and are buying back in the market as they upsize, relocate, or laterally move across markets. By taking a week out of their buying timetable will generate greater urgency to secure something and will intensify competition. This combined with the current stamp duty savings in both the residential and commercial sectors is having a positive impact. The next 6 – 8 weeks will continue to be ultra-competitive; the best advice is to be organised and educated. If you would like any assistance or advice, please do not hesitate to reach out.

The next 6 – 8 weeks will continue to be active, and the sentiment in the market echoes this off the back of the 5-day lockdown. I expect that the market will start to balance at this time; we will see more investors sell their properties, vendors price expectations rise to a higher level, and the reduction or cessation of some of the current market stimuli will bring a level of control back to the market.

The reforms impacting the rental market have been delayed but will come in to play in the coming month. We can provide a list of these reforms upon request but ultimately anything that is weighted in favour of the tenant will see a percentage of existing investors/ landlords be prepared to cash out of the market. This along with investors taking the opportunity to de-risk off the back of a rollercoaster 2020, we will start to see a greater supply of property coming on the market which is traditional investment stock.

The shift in vendor expectation is something that can be fuelled by the combination of strong market results and the hype created during the selling process. One thing we all need to be conscious of; including agents, buyers, and sellers, is that if an exceptional price has occurred with the sale of a home, that figure was the top of the market, and that buyer was now out of the market. For example, if a home has sold for $900,000, that does not automatically mean that $900,000 becomes the starting point. A similar home, in the same location, is not guaranteed a better result, so if you are a seller, be careful not to try and create the market, let the market work for you.

One huge positive to come out of 2020 has been the builders grant. Since the announcement of Homebuilder in June 20, new home sales in the December 20 quarter were almost 100% higher than the December 2019 quarter. One surprising impact of this has been the reduction in unit sales. The demand for standalone dwellings has increased the prices in this sector and the growth in house values will start to direct demand back towards units. There is a great opportunity here for investors to purchase at reasonable levels, as the yields for units are increasing, making them a sound, viable and strong performing investment choice.

The RBA continues to fuel confidence with their latest discussion around their belief that interest rates will remain at the current low level for a number of years. This is supported by a number of the major banks offering 4-year fixed home loan rates at 1.99%, supporting this with factual evidence. The reality it that even under such a competitive marketplace it is a great time to purchase to live or invest. There will be bumps in the road, but we can safely predict that property values will continue to grow, and if history continues to repeat, these values should double over the next 12 years.