While the Spring season is renowned as the strongest period for property transactions, 2020 has certainly created enough turbulence to disrupt even the most tried-and-true assumptions.
Thankfully, the real estate market is showing encouraging signs of recovery across the nation which should bolster the confidence of property owners, buyers, renters and investors alike. Here’s a snapshot of some of the key market indicators for last month, as researched by CoreLogic, that signal a positive uplift:
House values increase
The national home value index posted a 0.4% rise in October, moving back into positive month-on-month growth for the first time in six months. An interesting trend to note, with work-from-home opening up city-dwellers to the possibility of regional living, there has been a surge in interest amongst regional areas which has supported an 1.7% increase in regional dwelling values since March.
Sale rates increase
Looking to trends in the sale of properties, there has been a marked uptick in consumer confidence across Australia as the uncertainty around COVID-19’s impact on the country has begun to lift, supported by Government stimulus initiatives and low interest rates. The month of October saw overall property sales increase by 7%, now nearly on par with the results this time last year.
The ‘absorption rate’ of real estate points to the level of supply and demand and is a key marker of any healthy economy. While the number of new listings added to the Australian housing market remained low over the six months from March, there was a marked uptick of 25.2% in the month of October yet the total number of listings grew by less than 1%. This suggests that buyer demand exceeds the supply levels, given the stable number of total listings compared to the surge in new listings.
While the national market is showing positive growth trends, it pays to consult an expert who can provide an in-depth analysis of your local area and needs. Call us anytime on 4228 0888.