Quarterly Review July 2021

Today’s property market can be summed up in one word – ‘hot’! As home buyers and investors flock to take advantage of low interest rates, the advice of your Aussie Broker has never been more valuable.  

Home values jump 7%

Home values have notched up amazing gains through 2021, and the latest quarter has delivered the lion’s share of growth. 

Across Australia, median home values have soared 7% over the three months to June 2021, taking the annual price growth to 10.6% nationally.

Home values by state

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

Source: CoreLogic Hedonic Home Value Index 1st June 2021

Sydney tops the leaderboard, with quarterly gains of 9.3%, driving the median home value up to $970,355.

That’s followed by Darwin, which has absolutely shaken off a prolonged market downturn to record quarterly gains of 7.9%, pushing the city’s median home value to $478,072.

According to CoreLogic, 97% of the 334 neighbourhoods analysed have seen an uptick in value over the past quarter, something CoreLogic says is “an absolute rarity” across Australia’s diverse housing markets.

Over 200 neighbourhoods achieve ‘million dollar’ status

Soaring home values mean you could be a property millionaire! CoreLogic reports 218 suburbs Australia-wide have median values over $1 million.

A quarter of the markets that ticked over the million-dollar-median were in Sydney.

But plenty of other locations have hit 7-figure values including North Avoca on the NSW Central Coast (median value$1,466,568), Mount Macedon in Victoria ($1,319,881), and Buddina on the Sunshine Coast ($1,283,111).

Demand outpaces supply

Rock bottom interest rates are a key driver behind buyer demand. But low levels of homes listed for sale are also pushing prices higher.  

CoreLogic notes the ‘sales to new listings’ ratio remains around 1.1, meaning for every new listing there is more than one sale occurring. This is creating a true sellers’ market, and with many buyers often competing for the same property, it’s important to give yourself a winning edge.

Talk to your Aussie Broker about home loan pre-approval. It can put you in a strong position to act fast when the right property comes along. 

The property boom could have longer to run!

If you’re delaying a property purchase in the hope that prices could start to soften, you could be left disappointed. Plenty of experts believe the boom has a way to run yet.

CoreLogic is expecting housing values to keep rising through this year and into 2022, though at a gradually slower pace. AMP sees home values climbing by another 10 - 15% between now and the end of next year.

Rates could be set to climb – time to ink a better deal

Right now, we’re enjoying some of the lowest rates on record. But that won’t last forever.

In fact, with rates this low, they can only head in one direction – and that’s up. The Reserve Bank has repeatedly advised that it doesn’t expect to hike the official cash rate until 2024. 

But already a number of the big banks have lifted their fixed rates.

That’s usually a pretty good bellwether that interest rates could start to head north sooner, and this is adding to the sense of urgency across the property market.

If you haven’t had an opportunity to review your home loan rate, now is the time to talk to an Aussie Broker. Staying loyal to your old home loan could see you miss out on savings.

Plenty of great home loan deals are up for grabs, with savings that can set you up financially for the rest of 2021.

Remember too, the massive uptick in home values we’ve seen means you probably have a lot more home equity than 12-months-ago. This is money that can be freed up refinancing to let you achieve other personal goals.

Help for first home buyers and single parents

Rising property prices can present challenges for first home buyers. The good news is, help is at hand!

The 2021/22 Federal Budget dished up a raft of support for first home owners including an extension of the First Home Super Saver (FHSS) scheme.

From 1 July 2022, first home buyers can release up to $50,000 worth of voluntary contributions from their super for a home-buying deposit (up from $30,000 previously).

Also from 1 July 2021, an extra 10,000 places will become available under the First Home Loan Deposit Scheme. It’s a way to get into the property market sooner, with just 5% deposit – and zero lenders mortgage insurance (LMI).

If you’re a single parent, you could be eligible for the new Family Home Guarantee scheme kicking off on 1 July 2021. It lets solo mums and dads, who earn up to $125,000 annually, buy a home with just 2% deposit and no need to pay LMI.

The catch is that not all lenders have signed up to these schemes. Your Aussie Broker can save you time and money by letting know which banks have come on board – and whether you’re eligible.

Stamp duty savings on inner Melbourne apartments

Great news for Melbourne buyers, the Victorian state government announced a 50% on stamp duty for new homes within the City of Melbourne, plus a complete waiver of stamp duty for inner city homes that have spent a year or more on the market.

This is giving buyers valuable savings. If an inner city home is on your bucket list, don’t delay. The savings on stamp duty are set to end on 30 June 2022.

With plenty going on in the property market, mid-year is the time to speak to your Aussie Broker. It could be the step that gets you into your first home, next home – or a loan that suits your needs with the savings of a more competitive rate. 

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