If you’re a real estate investor or a future property buyer, you should refresh your knowledge about the current and expected trends in the market in 2021. After working through the complicated year of the pandemic that hit Australia with its first recession in 30 years, things are slowly beginning to look positive.
If you’re looking for houses for rent in Carlingford area, then you may be wondering how the pricing of rental properties is affected or is likely to be affected in the future. According to current trends in the market, the low-interest rates are increasing the demand for real estate buying, which is spiking the prices towards a record high.
Let’s take a look at a few indicators that tell us that residential rental property is going to experience a healthy boom in 2021:
- Consumer confidence is gradually increasing.
- The number of COVID cases is low and under control. Moreover, the prospect of a comprehensive vaccination program is on the horizon.
- The economy is beginning to re-flourish and is expected to boom.
- Auction clearance rates continue to look promising around the country.
- Transaction numbers are increasing consistently as more and more buyers, and sellers are entering the market.
- The bank loan deferral numbers are falling.
- Homebuyers and real estate investors are encouraged by the guarantee of low rates for the next three years.
- Improvement in employment rates and job creation is likely to give consumers the confidence to enter the real estate market.
5 Real estate Trends Expected in 2021
In this section, we’ll explore all the expected trends to rise in the real estate market in 2021. Let’s dive right in!
1. Property demand will continue to rise.
The finance housing approvals are at a record high right now, which indicates that the demand for real estate properties is rising. This demand is expected to continue to rise as more and more new homebuyers enter the market.
Regardless of the increased unemployment rate and the closing of several small businesses, the demand for residential properties continues to increase. The main reason for this is that employed people have made considerable savings during the pandemic. As the regular vacation plans, going out activities, and commute came to a halt, people were able to save up a lot more than regular years.
Moreover, as the borrowing cost is now low and the interest rates will continue to remain stable for the next three years, it has given people the confidence to dive into the market and invest in real estate properties.
2. Investors are likely to make the most out of first-time home buyers.
As the demand for property increases, investors are likely to squeeze out first-time homebuyers. The increasing competition to secure the best rates can keep first-time homebuyers at bay as more and more investors enter the market.
3. Property prices will continue to increase.
Although the trends of property value vary from area to area, overall, property prices are likely to increase across Australia. As the consumers gain confidence and new home buyers enter the market, the competition and demand are expected to rise, which will increase the prices as well.
4. Homebuyers are likely to pay a premium for the right neighbourhood.
The pandemic has shown us the importance of living in close proximity to all the essential needs such as employment, education, community and recreational services, etc. Now people are likely to pay a premium to live close to their workplaces.
Any neighbourhood that offers all the facilities within a 20-minute drive distance is likely to increase in demand.
The pandemic changed the course of many industries, and the residential rental property market also experienced a shift in trends. The demand and availability of real estate property are likely to keep increasing this year as more and more home buyers and investors enter the market.