We hope you had a very Merry Christmas and are ready to start the new year afresh. We certainly are! And we’re excited for what this year will bring.
Sentiment has certainly improved in all areas of life, and the real estate market is no exception. We have seen huge demand for property over the past few months and there is no sign of this abating. With this resurgence in activity has come a bounce back in the market, with a return to positive price growth in Melbourne. CoreLogic data shows dwelling values rose by 0.7% in Melbourne over November, greater than the 0.4% growth in Sydney and 0.6% in Brisbane.
Over the past month we have seen a return to ‘COVID normal’ conditions for buyers, with auctions now able to be held with no limit on the number of attendees and open for inspections able to take place without the need for private appointments.
At the end of 2020, I was excited to learn that as CEO of Property Mavens, I have been named as a finalist in the REB Awards for ‘Innovator of the Year’ and ‘Thought Leader of the Year’. The REB Awards is a national awards program that identifies Australia’s top real estate industry professionals or businesses.
What’s in store for property in 2021
After ups and downs, the real estate market had a strong finish to 2020, but what will happen this year?
The improved sentiment will continue and we expect activity in the property market to remain strong at least for the next few months. First homebuyers are driving the market, with the latest data in October showing the number of owner-occupier first home buyer loan commitments rose by 3.4% per cent to 13,481 (seasonally adjusted), a figure 30% higher any other pre-COVID month since 2009.
All this demand could lead to a new boom with strengthening growth or it could be a mirage and prices may flatline. Or we could end up somewhere in the middle. We don’t have a crystal ball to indicate which it will be, but we will be watching the market carefully post March, when JobKeeper comes to an end, as this will impact the economy and people’s finances. It may lead to people having to sell or buyers being unable to purchase.
We can confidently say that prices won’t fall off a cliff, dropping by 20, 30 or 40 per cent, as predicted by some experts at the start of the COVID, so don’t expect to nab a property at a bargain basement price. But whether the market as a whole continues growing is a question mark. What we do know is that certain properties – investment-grade properties - will always grow in value because they will always be in demand.
Be aware that very different properties will have very different outcomes. A small apartment 40 storeys above the city won’t behave like a big family home or smart townhouse in a hipster suburb. Their prices move up or down thanks to the factors in the market at any given time. You want to buy a first home which has as many factors working for it as possible so it will improve in value over the next three to five years.
Moving forward the properties most in demand may change as a result of changes that have arisen from COVID.
Two of the biggest drivers of demand for real estate over the last 15 years have been migration and overseas students. That’s influenced prices in areas these groups settled in, including inner-city units, and delivered knock-on effects to other suburbs as well. Well that tap has been turned off – and it’s unlikely to be fully turned on again. For years.
At the same time, the proportion of Aussies working from home jumped from 6% last year to 35% in 2020. That percentage will probably fall back a bit over time, but ‘Work from Home’ is real factor affecting real estate and it’s likely to stay that way. For ever.
These are just two factors affecting the overall market, but each property needs to be considered against the factors influencing its chances of rising in value regardless of what the rest of the market is doing. You can probably name three or four of them right now. Do you know how many factors I look at? 57.
An experienced and expert buyers’ agent such as Property Mavens can provide advice and help buyers and sellers to navigate any market and choose the right properties. If you are a buyer or seller that needs assistance, contact us today for an obligation-free discussion.
Please note, while we have continued to be available for deals currently in progress over the holiday period, our office will officially be open again on Monday, January 4.
Why do you need a buyer's advocate ?
First homebuyers Ivan and Renata recently engaged Property Mavens as a buyers’ advocate to help them purchase an A-grade home.
With a tight budget and in a fast-rising market, Ivan and Renata wanted to purchase a low-maintenance property in sought-after school zones as their dream family home . We were able to successfully purchase this fantastic property, a 3-bedroom, 2-bathroom townhouse in Essendon in what is a highly competitive market.
We successfully bid for this property at auction and secured it at market value, against strong competition.
Ivan and Renata were very happy!
If you want help to identify an investment-grade property like this one, whether it’s a family home or an investment property, click here to book a time with us to discuss your requirements. It’s 100% obligation free.
Why do you need a vendor's advocate ?
After deciding to downsize, Gwenda was referred by a client and sought out our expert Vendor Advocacy advice to support and guide her throughout the sales journey for her 3 bedroom, 2 bathroom house in Blackburn North.
After determining which 3 agents best suited her needs, Gwenda selected her preferred agent and the sales and marketing process began with gusto.
The result was a negotiated sale price of $35,000 over the top of the quote range, to Gwenda’s delight! It was sold via an Expressions of Interest campaign within 10 days of listing the property for sale.
As professional property buyers and vendors advocates, we know the difference between a bad selling agent and a great one. If you would like help to secure a fantastic outcome like this one, whether it’s selling a family home or an investment property, and you’re ready to get started, click here to book a time to discuss your requirements. It’s 100% obligation free.
Alan and Kristine wanted an investment grade property in Ballarat to diversify their portfolio and generate income, so engaged our Ballarat buyers agent services to help.
With a specific brief to purchase a low maintenance property with the ability to add value in time while delivering a strong yield, we successfully purchased this property, a 3 bedroom, 2 bathroom house in Ballarat delivering a strong 5% yield in what was a highly competitive market.
We purchased this home for Alan and Kristine in January 2019 for $314,000 and when it was appraised in December 2020 it was valued at $425,000. That’s a $111,000 gain or 35% in less than two years! When buying a property, selection is everything. If you make a mistake and buy the wrong property it will cost you dearly over time. Only 5% of properties in the market are investment-grade – we can identify these, and that is why our clients do so well in terms of capital growth.
As professional property buyers we know the difference between a bad property and a good one, where to buy to generate the strongest returns, how to buy to secure the best result, and what properties are really worth, to ensure our clients don’t pay too much. If you want similar results, click here to book a time with us to discuss your requirements. It’s 100% obligation free.
Go Forth and Prosper !
Love to talk real estate?
If you want to invest or buy the right home for your budget, or sell your property click here to book a time, or call us for a chat about securing your financial independence.
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At Property Mavens we choose to give back to help create social change within our business model. If you use our buyers or vendor advocacy services, you will be helping to make a positive impact within the local and wider community.