2021 is tipped to be one of the busiest years for property ever as money remains cheap and readily accessible, with a majority of Aussies agreeing that now is a good time to buy.
Optimistic home buying sentiment has reached a pre-pandemic high in Australia, according to new research, which found that as many as 67 per cent of Aussies believe that now is a good time to buy, up from just 42 per cent in April 2020.
Back in April, consumer sentiment crumbled as Aussies braced for the worst recession since the Great Depression, but today, sentiment is well and truly on the rebound with Aussies looking to put their money in property, Finder’s latest research suggested.
Graham Cooke, insights manager at Finder, said the recent uptick in buyer confidence is a good sign for the economy.
“This rebound in buyer confidence is indicative of increased economic activity over the past few months, along with an optimistic outlook for 2021.
“Not only did the Australian government do a better job than most at restricting the spread of COVID-19, but federal and state economic support measures helped prop up the property market.
“Now we’re seeing that house values in every capital city bar Melbourne are higher than they were compared the same time last year,” Mr Cooke said.
But consumers are not alone in predicting a boom, with 86 per cent of economists telling Finder that they expect prices to fully recover nationally this year.
According to CoreLogic data from December 2020, house values in Sydney are up 3.95 per cent year-on-year, with Brisbane values also up by 4.57 per cent during the same time period.
Mr Cooke said that prospective buyers should consider the pros and cons before taking the plunge in the current market.
“Low interest rates and government assistance packages like the First Home Loan Deposit Scheme put buyers in a strong position. The potential removal of stamp duty in NSW will be another boon for buyers and may spread to other states,” said Mr Cooke.
The Reserve Bank has confirmed that the cash rate will remain steady for three years, giving Aussies a high degree of confidence, but nevertheless economists are urging caution given the unpredictability of the COVID virus.
In a recent blog, Rich Harvey, buyer’s agent and CEO of propertybuyer.com.au, said that while buyers need to consider the “wobbles” – the unintended consequences that put the economy off track – they mustn’t let these throw their property plans off track.
He noted that while some commentators are suggesting there will be large volumes of mortgage defaults, the evidence is very scant.
“Savvy buyers think far more about the long term.
“They consider what the world will look like post-COVID and after the wobbles have passed,” Mr Harvey concluded.