The market is seeing a surge

“The market is absolutely seeing a surge in activity from qualified buyers.”

That’s from Market Buy’s chief digital strategist, John Hellaby. He tells us:

• Less property on the market is driving demand and increasing offer activity.
• Property prices are continuing in an upward direction.
• Homes are bidding up to $50k above first offers.

Add to this:

REGIONAL AREAS ARE CONTRIBUTING TO HIGH DEMAND

People from metro areas are still flocking to regional areas for lifestyle changes:

• Many regional areas are outperforming Aussie capital cities.
• At first glance these areas seem less affordable for investors.
• BUT low-interest rates have helped to make housing more affordable than the average over the past 20 years (December 2020 HIA Affordability Report).

With this influx of housing activity, it’s no wonder many investors are expecting the RBA to raise the cash rate, perhaps as early as next year. Thankfully, there’s good news on that front.

RBA TO HOLD CASH RATE
The Reserve Bank of Australia has put to rest chatter among investors:

“The Board will not increase the cash rate until actual inflation is sustainably within the 2 to 3 per cent target range. For this to occur, wages growth will have to be materially higher than it is currently.

This will require significant gains in employment and a return to a tight labour market. The Board does not expect these conditions to be met until 2024 at the earliest.”

This news means investors can service their loans at the same low rates – and have a bit more time to take advantage of investing opportunities.

Finally, Melbourne is slowly coming back to life after its long, strict lockdowns last year. And the Property Council of Australia has begun an initiative promoting 4pm knock-offs. They’re calling it Fab Fridays.

FAB FRIDAYS IN MELBOURNE

• Its aims? Attract workers back to the office. And reignite the excitement of being in the Melbourne CBD in a COVID-safe way.
• Incentives: Morning yoga, discounted food and coffee – and possibly free public transport.

Cheers, John

P.S. Have you been researching property for a while and want to put that research and knowledge into an action plan so you don’t fall victim to procrastination? Book in for a call back next week.