Property Market Update
September 2021

With winter behind us, and the holiday season not far away, Aussie home owners have plenty to celebrate as home values keep heading higher.

12 October 2021|3 minute read

property market report september 2021

What a year! Home values rise by over $2,000 each week

It’s been a tough few months for many of us thanks to COVID-19 lockdowns, but despite all the disruption, home owners have come up trumps, with the past year delivering outstanding gains in property values.

Back in September 2020, the median home value nationally was $552,689. Today that figure is $666,514. That’s an extra $113,825 in home equity in the space of 12 months. It means Aussie home owners have pocketed $2,188 each week in home equity – an awesome result!

The incredible gains aren’t limited to our cities. Regional markets have shone during the pandemic as the new work from home trends mean more people are choosing to snap up an affordable home in a regional community.

That’s helped to drive values outside of metro areas higher over the year. Here’s how regional house prices have shaped up over the past year in your state/territory:

  • Regional NSW ↑24.8%
  • Regional VIC ↑20.3%
  • Regional QLD ↑20.8%
  • Regional SA ↑14.3%
  • Regional TAS ↑26.1%

With a median regional home value of just $493,925, compared to a median of $751,014 across the state capitals, regional buying can deliver plenty of bang for your buck, and that spells ‘opportunity’ for first home buyers, investors and downsizers.

Lift off for new spring listings

The spring selling season has kicked off in earnest according to CoreLogic. Every Australian capital city has seen a jump in the number of property listings coming onto the market over recent weeks – with some of the largest increases recorded in cities navigating lockdown!

More listings means more homes for buyers to choose from, but it’s still a hot market. Adrian Kelly, President of the Real Estate Institute of Australia, says, “Buyer demand is absolutely through the roof with most agents reporting that for every property they are selling, they could probably have sold it another five to 10 times over.”

He adds that sellers who do go to market now are achieving “premium prices” due to low levels of properties and pent up buyer demand.

If you’re thinking of upgrading to your next home, this spring could be the ideal time to take the next step on the property ladder. Your local Aussie Broker can explain the loans suitable to upgraders – it could even see you save with a lower rate.

Investors pocket double digit returns

Property price growth has been accompanied by rising rents. Across our state capitals, rents have jumped by as much as 23% in cities like Darwin.

Capital gains, plus an uptick in rents, is the perfect combo for investors, who’ve pocketed double digit total returns over the last year, ranging from 16% in Melbourne to an exceptional 30.2% in Hobart.

Add in rock bottom interest rates and it’s no surprise that investors are pouring into the Australian property market to get their slice of the action. The past 12 months has seen the number of loans issued to investors rise by an amazing 99%.

If wealth creation is a priority and a rental property is on your bucket list, hurry in to your local Aussie Broker for expert advice on how you can get into the housing market. It can be a great way to put your home equity to work!

What’s next for interest rates?

The Reserve Bank of Australia (RBA) has repeatedly said it doesn’t expect to lift interest rates until 2024. But lenders aren’t so sure.

Modelling by the Commonwealth Bank suggests rates could start to climb sooner, and plenty of lenders have already started hiking up their fixed rates.

Locking in a fixed rate is a personal choice, but we’re still seeing fixed rates around the 2% mark. It’s an exceptionally low rate – if you’ve been thinking about locking all or part of your home loan into a fixed rate, now is the time to talk to your local Aussie Broker. Leave it too late and you could kick yourself that you didn’t make the move sooner.

Refinancers – the potential to save $2,000

Despite the incredible home loan deals up for grabs right now, 6 out of 10 homeowners aren’t confident their home loan offers a good deal. And if you’ve had the same mortgage for some time, chances are it doesn’t – regardless of whether you’re an owner occupier or an investor.

That’s because Reserve Bank data shows lenders are saving their best rates for new customers. Sticking with your old loan could be costing you. It’s that simple.

David Hyman, CEO Lendi Group (parent company of Aussie and Lendi), says by not setting aside a small amount of time to look at their home loan, Australian mortgage holders could be missing out on thousands of dollars in savings – money that could be really helpful for many families and individuals.

How much could you save by switching to a new loan? Data from Lendi Group shows refinancers could save around $2,000 by dropping less than 1% in their interest rate.

Your local Aussie Broker can explain whether you could save by refinancing – and don’t forget, dozens of lenders are offering cashback deals to refinancers. It could see you pocket a cash freebie worth thousands when you switch to a new loan and save. What a great way to head into the festive season!

Want expert home loan help?

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