Aussie property market: 2021 in review
What a year for Aussie property! There’s no doubt about it, it has been a hot market. Here are some of the market highlights:
2021 saw the highest residential real estate sales volumes in 18 years
The value of Australian all residential real estate increased to $9.4 trillion from $7.2 trillion from November 2020 to November 2021
Aussie property prices soared in 2021
CoreLogic Head of Research, Eliza Owen, reported that detached house prices rose by 24.6 per cent in the year, while unit prices went up 14.2 percent. From a geographical breakdown, regional dwellings saw an annual valuation increase of 25.2 percent, surpassing the performance of the combined capital cities, which was 21.3 percent. This broadly reflected a shift to work from home, a change that has now had an impact on property prices.
Government Stimulus helps first home buyers
The Federal Government and State governments have added stimulus to the market and helped a number of First Home Buyers get into the market. But if you have not dipped your toes into the property market yet, don’t lose hope, there are still opportunities for you to purchase into this market. The thing to remember is to get your loan approved and be ready to move if you see the right opportunity.
Interest rates on the move
Fixed interest rates have been ticking up materially over December, but there are still very good variable rates for homeowners available. We would expect more pressure for the RBA and banks to increase interest rates over the next calendar year as inflation finally kicks into the economy. So if you have a loan, do review your mortgage rates to see what is possible with your bank.
What’s been happening at Raiz home Ownership?
Lots has been happening at Raiz Home Ownership. We have settled loans from first home buyers utilising the Federal Government’s 5 % Deposit scheme (FHLDS), settled private banking placements and even settled some Self-Managed Super Fund lending. We have a lot more in store for 2022 with an expansion of our offering. Watch this space!
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