National prices soar, but market loses momentum

Australian dwelling values finish the financial year 13.5% higher than a year ago, a figure lead by houses which rose 15.6% over the year, compared to a 6.8% lift in unit values. Sydney itself has recorded strong house growth over the past year (19.3%), the bulk of growth recorded in 2021.

According to CoreLogic, this has been the highest annual rate growth seen in the Australian residential property market since April 2004, however, some markets are showing notable signs of ease.



Continued low stock levels, the fall of unemployment rates, and record low interest rates have remained the driver in housing demand, however, it is believed we have already moved through the peak rate of growth, with signs of the market losing steam based on 2.2% drop in the rate of growth recorded in May. With many people priced out of the market it is likely demand will continue to reduce, listing numbers will normalise, and the “fear of missing out” buyers are experiencing will dissipate. Despite the slowdown, CoreLogic have indicated it is reasonable to expect double digit growth nationally by the end of 2021.

As Sydney nears conclusion of its first week back in lockdown conditions, head of CoreLogic’s research, Tim Lawless, suggested it is unlikely the restrictions will have a high impact on housing values. The duration of the lockdown and any potential fiscal support is expected to have an affect. On our end, auctions have moved to the online space, inspections are still going ahead under strict, one-on-one conditions, virtual appointments are available, and the market still seems to be moving along.

Our team are still in operation and ready to assist in this time, with many properties available both on and off the market. Whether it’s a virtual appointment you need or a socially distanced, face to face meeting, we can accommodate!