While many of us were happy to say goodbye to the year 2020, the property market ended the year on a strong note with every capital city across the country reporting price growth for the month of December.
According to the CoreLogic December Home Value Index, national dwelling values finished the year 3 per cent higher than the previous year, after rising by 1 per cent in December.
The Australian property market has made a remarkable recovery since the beginning of the pandemic. From April to September property prices saw a -2.1% drop, no doubt as a result of lockdowns and the general uncertainty at the time.
But things have picked up quickly since. Buyers have regained their confidence in the market and been quick to take up government incentives and make the most of record low interest rates.
CoreLogic research director Tim Lawless has found the property market’s rebound to be unsurprising however, especially given the rapid and substantial monetary support provided by the government and policy makers.
“Record low interest rates played a key role in supporting housing market activity, along with a spectacular rise in consumer confidence as COVID-related restrictions were lifted and forecasts for economic conditions turned out to be overly pessimistic. Containing the spread of the virus has been critical to Australia’s economic and housing market resilience,” Mr Lawless said.
Regional markets have been particularly popular
While the market overall has been strong, it’s regional property that has been the outstanding performer.
Historically, it has generally been capital cities that have seen the strongest growth, but 2020 has seen a rapid rise in regional markets.
The combined annual value of regional markets rose by 6.9 per cent in 2020, more than three times more than the combined value of the capitals, which was up by 2 per cent.
This has largely been attributed to the growing prevalence of remote working and the demand for lifestyle properties and lower density housing.
Looking ahead, we have started 2021 in a very strong position and with a lot of the same fundamentals around there’s a good chance we will continue to see buyer’s rushing to get into the market.
But if you want to get into the market you’re better off doing so sooner rather than later, otherwise if we continue to see prices rise you may end up paying more if you wait too long.
The full CoreLogic report can be found at www.corelogic.com.au/news/corelogic-december-home-value-indices.