FOMO (fear of missing out) seems to be a common theme around Australia’s property markets.
Auction clearance rates remain high, prices are continuing to rise and supply remains constrained. 
And we are being played with by the media, who are whipping up a frenzy with emotive headlines, causing some homebuyers to worry that the housing market is running away from them, while they worry others by speculating that interest rates are about to rise or that unemployment will escalate to 8% when JobKeeper ends.
The fact that we respond to these headlines is normal.
After all, we’re human and the desire or aspiration of buying our first home or upgrading our existing home, or getting onto the property investment ladder is normal.
So to bring some sense into the discussion please watch this week’s Property Insiders chat with Dr. Andrew Wilson, chief economist of MyHousingMarket.com.au we dispel some of these media myths.
Australia’s housing market is in the midst of a broad-based boom
Home values have been rising in March continuing their strong performance in the first 2 months of the year and our auction markets, which are a good real-time indication of both buyer and seller sentiment have commenced Autumn with ongoing record-breaking activity.
Watch this week’s video as Dr. Wilson gives his summary of the auction markets around Australia.
The Sydney auction market is now tracking at unprecedented levels which is likely to continue moving due to strong buyer demand at a time when new listing growth declines.
One weekend after another the high auction clearance rates continue in Melbourne, meaning property prices can only go one way over the next year.
Rental market
While our housing markets have been very resilient through Covid and are now surging in 2021 our rental markets have been quite fragmented.
Watch this week’s video as Dr. Wilson explains how the disparity in rental markets across Australia has been extreme.
At one end of the spectrum, we have extremely tight rental conditions in cities such as Perth and Darwin where both house and unit annual rental growth is above 10%.
At the other end are the unit rental markets of Sydney and Melbourne where rents have plunged over the last year, down -5.3% in Sydney, and -8.0% lower in Melbourne.
In a similar vein to housing values, rental markets are stronger within the detached housing sector relative to the unit sector.
What happened to the recession?
Last week the latest economic data showed that our economy continues to rebound with the fourth-quarter GDP beating most expectations rising by a strong 3.1% over the quarter
Watch this week’s video as Dr. Wilson explains how our economic growth is being driven by broad activity with not only consumers spending but also businesses investing in machinery and equipment and government demand growing.
Unemployment
Recently the NAB/SEEK employment report suggested that strong growth in job ads signals the possibility that the labour market may tighten faster than expecting meaning unemployment will fall faster than many anticipate.
Watch this week’s video as Dr. Wilson and I discuss what’s ahead for our unemployment rate.
Interest rates
Watch this week’s video as Dr. Wilson explains my interest rates are not going up any time in the foreseeable future and how those who believe they will be putting the cart before the horse.
He also answers a regular viewer’s question about sovereign bond yields.
Now is the time to take action and set yourself for the opportunities that will present themselves as the market moves on
If you’re confused about the mixed messages in the media you are not alone.
However, you can trust the team at Metropole to provide you with direction, guidance, and results.
In challenging times like we are currently experiencing you need an advisor who takes a holistic approach to your wealth creation and that’s exactly what you get from the multi-award-winning team at Metropole.
If you’re looking at buying your next home or investment property here’s 4 ways we can help you:
- Strategic property advice. – Allow us to build a Strategic Property Plan for you and your family. Planning is bringing the future into the present so you can do something about it now! This will give you direction, results, and more certainty. Click here to learn more
- Buyer’s agency – As Australia’s most trusted buyers’ agents we’ve been involved in over $3Billion worth of transactions creating wealth for our clients and we can do the same for you. Our on the ground teams in Melbourne, Sydney, and Brisbane bring you years of experience and perspective – that’s something money just can’t buy. We’ll help you find your next home or an investment-grade property. Click here to learn how we can help you.
- Wealth Advisory – We can provide you with strategic tailored financial planning and wealth advice. Click here to learn more about we can help you.
- Property Management – Our stress-free property management services help you maximise your property returns. Click here to find out why our clients enjoy a vacancy rate considerably below the market average, our tenants stay an average of 3 years, and our properties lease 10 days faster than the market average.
from Property UpdateProperty Update https://propertyupdate.com.au/property-news-headlines-forecasts/
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