James Symond’s Quarterly Review April 2021

08 April 2021|2 minute read



What an exciting quarter! Home values are rising at the fastest pace in 17 years, interest rates at historic lows, and home buyers are flocking into the market. 

Let’s break it down to see what it means for you.

Home values soar across Australia 

Despite all the uncertainty and disruption of the pandemic, Australian home values surged 2.1% higher in February, the largest monthly change since August 2003.  We haven’t seen this sort of synchronised growth – where values are rising across every capital city plus regional areas – for more than a decade.  

And it’s leading to some remarkable annual gains. 

Darwin tops the leaderboard for the biggest increase in home values over the past 12 months (values up 13.8%). That’s followed by Canberra (9.7%), Hobart (8.7%) and Adelaide (7.3%). 

It’s great to see Perth back in growth territory, with property price gains of 4.6% over the past year, just behind Brisbane where values have climbed 5.0%. It’s not just big city markets that are thriving. Home values across regional areas were up 2.1% in February, with outstanding gains of 9.4% over the last 12 months.  

It’s not just big city markets that are thriving. Home values across regional areas were up 2.1% in February, with outstanding gains of 9.4% over the last 12 months.

Home values by state

Compare the growth of home values by month, quarter and across the whole year.

Location Month Quarter Annual Total
Sydney 2.5% 3.6% 2.8% 5.3% $895,933
Melbourne 2.1% 3.5% -1.3% 1.8% $717,767
Brisbane 1.5% 3.5% 5.0% 9.3% $535,618
Adelaide 0.8% 2.7% 7.3% 11.8% $478,587
Perth 1.5% 4.2% 4.6% 9.3% $491,795
Hobart 2.5% 4.8% 8.7% 14.0% $535,994
Darwin 0.7% 5.5% 13.8% 19.4% $438,645
Canberra 1.9% 3.7% 9.7% 14.6% $706,454
Combined capitals 2.0% 3.6% 2.6% 5.9% $675,014
Combined regional 2.1% 5.4% 9.4% 14.4% $438,185
National 2.1% 4.0% 4.0% 7.6% $598,884

Source: CoreLogic Hedonic Home Value Index 1 March 2021

Sydney and Melbourne still below previous peaks

February saw the Sydney and Melbourne markets bounce back into action, with home values rising 2.5% and 2.1% respectively for the month.

On the plus side, home values in both cities are still below their previous peaks, and that means opportunities exist for value buying. But it can pay to act fast. 

According to CoreLogic, at the current rate of price growth it won’t be long before Sydney and Melbourne home values reach new highs. Set a date today to speak with your local Aussie Broker to know how you get into the market sooner. 

What’s driving the market boom?

Home values are being spurred on by record low interest rates plus a raft of government incentives, and a rapidly recovering economy.

There’s another factor at work too. There simply aren’t enough homes listed for sale to meet demand.

In fact, the number of properties advertised for sale nationally is 26% lower today compared to a year ago. In this environment, buyers are in hot competition with each other, but you can give yourself a winning edge.

One strategy is to have your home loan pre-approved, so you can act fast when the right property comes along. Your Aussie broker can explain how preapproval works, and start the ball rolling for you.

Home loan lending soars

Records are also tumbling on the home loan front. Demand for home loans jumped 10.5% in January, with a massive increase of almost 16% in construction loans.

The first month of the year saw loans to first home buyers climb 10%, with almost 17,000 Australians buying their first home in January alone – great news for first home owners!

Now could certainly be the time to buy a place of your own. Rent are starting to climb around the country – with rent hikes as high as 10% recorded in both Perth and Darwin.

Investors are also racing into the market. Demand for investment loans skyrocketed 9.4% in January. If you’ve been thinking about investing in property, rising home values mean you could have plenty of home equity – a great resource that can help you fund a rental property.

Ask your Aussie Broker about how to use your equity to become an investor.

Home owners continue to land a better deal

We’re seeing incredible value in the mortgage market right now. Plenty of loan rates start with a ‘2’, yet if you’ve had the same loan for a few years, you could be missing out on the savings.

The average variable rate on established loans is 3.15% –  that’s a lot higher than the average of just 2.85% on new loans.

The good news is that more Australians are refusing to wear this home loan loyalty tax. CoreLogic say almost seven out of ten property valuations in February related to home loan refinancing. The question is, are you getting the best deal possible?

Your Aussie Broker can let you know in just a few minutes if you could save by refinancing. Better still, we’ll do all the hard work to make it happen.

2021 is shaping up as a fantastic year for property. To tick off your property wish list – from buying a first home, upgrading to your next home, or simply saving each month by refinancing, talk to your Aussie Broker. Together we can make it happen.   

Want expert home loan help?

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