Contrary to much publicised expectations of collapsing property prices, at Integrity Finance Australia we are seeing strong demand in property pushing quality property prices up.
Interest rates now below 2% and increasing optimism that the worst of COVID-19 related economic lock-downs in Australia are most likely behind us, are combining to create renewed demand for property well in excess of supply.
We do not see that momentum-changing and expect a stronger December/January summer real estate market than is traditionally the case.
This view is supported by media stories as below.
AUSTRALIA’S REAL ESTATE MARKET IS SPLITTING IN HALF
Based on CoreLogic’s daily hedonic index, the Melbourne residential property market bottomed on October 18. Since then, dwelling values in the southern city have appreciated by a solid 0.44 percent.
In the first 12 days of November, they climbed 0.22 percent, outperforming Sydney, Brisbane and Adelaide, although lagging stronger growth in Perth (0.40 percent).
This reconciles with impressive auction clearance rates on what have been healthy volumes: CoreLogic estimates the clearance rate in Melbourne last weekend was 68 percent on a total of 607 auctions.
Across the five largest cities, the low watermark for national home values looks to have been October 13, almost exactly six months after prices started declining.
Suite 2, 1 Railway Crescent
Croydon, Victoria 3136
Telephone: 03 9723 0522
Email: integrityone@iplan.com.au
Nicholas Berry Credit Representative Number 472439 and Thomas Bailey Credit Representative Number 472440 are Credit Representatives of Integrity Finance (Aust) Pty Ltd – Australian Credit Licence 392184.
This information is of a general nature and does not take into consideration anyone’s individual circumstances or objectives. Financial Planning activities only are provided by Integrity One Planning Services Pty Ltd as a Corporate Authorised Representative No. 315000 of Integrity Financial Planners Pty Ltd ABN 71 069 537 855 AFSL 225051. Integrity One Planning Services Pty Ltd and Integrity One Accounting and Business Advisory Services Pty Ltd are not liable for any financial loss resulting from decisions made based on this information. These articles are not owned by Integrity One Planning Services. Please consult your adviser, finance specialist, broker, and/or accountant before making decisions using this information.