Here are some of the indicators suggesting that 2021 will be a great year for property investors...
- Consumer confidence has been gradually improving, as has business confidence.
- Auction clearance rates were consistently strong in the last few months of 2020, not just in the two big auction capitals of Melbourne and Sydney but around Australia.
- More buyers and sellers are in the market and transaction numbers have increased considerably.
- At the same time the banks are keen to write new business..
- Bank loan deferrals have been falling – there’s no chance of an avalanche of forced mortgagee sales as many were worried about.
- The latest rate cut and the “guarantee” of rates remaining low for at least 3 years, will give home buyers and investors confidence.
- Moving forward it is looking more likely there will be further job creation, consumer confidence and business confidence (leading to spending and employment). This will underpin our housing markets.
Just to make things clear…we’re not going to fall off a fiscal cliff...as doubters have predicted.
And there is no Australian property bubble that’s about to burst as those same doomsayers keep telling us.
Quite the opposite – there is a perfect storm of positive factors developing for our property markets this year – a confluence of multiple growth drivers which will propel our property markets into 2021 and 2022.
ANZ Bank economists recently said their earlier house price forecast on the decline of 10% from peak to trough has proven too pessimistic.
Instead they are forecasting price gains of around 9% across Australia’s capital cities in 2021.
While there are still many challenges ahead for our economy and our property markets, there are many reasons to be optimistic about certain segments of the Australian property market, particularly in the long term.