According to CoreLogic’s (formerly RP Data) national index statistics, after experiencing national gains in October, the upward trend continued in November, with dwelling values up 0.8% over the month and an average of 3.1% over the year.
Property analysts now reject their initial predictions of 10 to 20% decline in house prices and believe if COVID-19 remains under control, we should see a continual rise in Australian property prices through to early next year.
Canberra and Darwin came out as top gainers with an increase of 1.9% in dwelling values during November 2020. Sydney, on the other hand, experienced the smallest gain with 0.4%, possibly due to the decline in their rental market.
Covid-19 has caused a great number of people to be stood down or laid off during this year. It is common that when unemployment increases, the Reserve Bank steps in to lower interest rates, making it cheaper for people to buy homes.
According to CoreLogic’s head of residential research Eliza Owen, “People who still have a job and are in a position to buy property find that they have access to more money and debt is cheaper.” This scenario has created what they call the “seller’s market”. This was demonstrated in this year’s television series The Block, which saw contestants walking away with the biggest profits ever seen on the show. The winning couple, Jimmy & Tam sold their property for $966,000 over the reserve. Even Daniel and Jade, who came in last, sold for $460,000 over the reserve.
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Sources:
Covid-19 has caused a great number of people to be stood down or laid off during this year. It is common that when unemployment increases, the Reserve Bank steps in to lower interest rates, making it cheaper for people to buy homes.
According to CoreLogic’s head of residential research Eliza Owen, “People who still have a job and are in a position to buy property find that they have access to more money and debt is cheaper.” This scenario has created what they call the “seller’s market”. This was demonstrated in this year’s television series The Block, which saw contestants walking away with the biggest profits ever seen on the show. The winning couple, Jimmy & Tam sold their property for $966,000 over the reserve. Even Daniel and Jade, who came in last, sold for $460,000 over the reserve.
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Sources:
- December 1, 2020
- 10:06 pm