Surging property prices are proving to have very little impact on our desire to enter the property market.
Recent surveys have highlighted that whilst most Australian’s believe now is not the best time to buy, many still plan to purchase in the months ahead.
Widespread expectations around strong continued property price growth is fuelling an unprecedented level of buyer confidence leaving many Australian postcodes overwhelmed by buyer demand.
The appetite to buy a home hit new heights in the first quarter of 2021, according to NAB. The big four lenders uncovering record levels of Australians plan to purchase within the next 12 months, despite property prices increasing at record-breaking levels at the start of the year.
New listings fall as property owners won’t sell if they can’t buy
A gridlock is appearing across the nation. Property owners wishing to sell are finding themselves unable to do so due to the fear they will be unable to find a suitable property to purchase.
This issue is compounding due to the shortage of rental properties nationally, leaving motivated sellers concerned that if they sell their family homes they will be left out in the cold, without a roof over their heads.
Sellers are very aware they will achieve fantastic sales prices but they are also aware that this pent-up demand from buyers has created a widespread ‘traffic jam’ across the entire national property market.
The most motivated ‘seller markets’ – Sydney & Melbourne, have seen a dramatic reduction in listings during June 2020. New listings in Sydney fell by 7.8% according to Domain Group, but some capital cities experienced even more dramatic falls. In Melbourne, for example, new listings dropped by over 28%.
First Home Buyers face stiff competition from Investors
First Home Buyers are not only challenged by the harsh reality of a fast-moving property market, but they now also have an extra challenge due to an uplift in the number of property investors returning to the market.
As if rising property prices wasn’t now enough of a challenge for today’s First Home Buyers, new data now highlights the extra competition home buyers face from a recent surge from property investors.
Investor loans have fallen to a record low level, adding an extra level of fuel to the emerging swell of investors competing for property. In April, the Australian Bureau Of Statistics reported investor loans across Australia had increased by 2.1%, reaching a four-year high of $8.05 billion.