Drawing from her years in the industry and “some pretty solid” market indicators, Michelle May, founder of Michelle May Buyers Agents, has shared the top trends she expects to play out in the property market in the new year, along with tips of how to best navigate what’s to come.
TREND: Historic low interest rates mean buyer confidence will increase
In a bid to bolster the economy through the current crisis, the RBA has slashed the official interest rate to a historic low of 0.10%.
“With the Reserve Bank adding that they don’t anticipate seeing rates increase for at least the next 3 years, the carrot has officially been dangled for potential buyers. Low interest rates like we have now means borrowing has never been cheaper and should give all categories of buyers the confidence to jump in,” May said.
“Motivated by high clearance rates and extraordinary sales results, vendors will have more confidence to list their properties too, meaning there will be a slightly higher number of transactions in the near future.”
TREND: Aussie expats are buying to move home
The uncertainty brought on by COVID has led many Aussie expats to consider returning home to build on a new life here.
“The majority of expats I work with are young families that are looking to buy in areas where their kids can grow up and go to school and they are willing to pay top dollar for these homes,” May added.
Further, given the rapid digitisation brought on my COVID, there are a “multitude of platforms” to enable clients to have the confidence to buy and secure a mortgage remotely.
TREND: The housing market will remain undersupplied
May expects to see growth in the number of properties hitting the market in the early months of 2021, but also predicts those looking to buy may still find the market slim in most metropolitan areas.
“I foresee that the continued high demand for properties will continue to outstrip the supply of houses… [meaning] auctions will continue to yield exceptional results for quality stock and exceed asking prices,” May explained.
TREND: Purchases will be more based around functional uses of homes
May emphasised that, for many, the motivation for buying a home has changed from what it once was.
“The pandemic has highlighted what functionality in the home [Aussies] really need,” said May.
“Features such as a home office and a space for the kids to learn at home have become essential. For many families, these ‘nice to haves’ are now firmly on the ‘must haves’.
“There is also an increased focus on outside spaces. Inner city suburbs are really focusing on green spaces around them such as community gardens and parks and those further out are keen to secure homes with a backyard, or at the very least a courtyard.
“The benefit of low interest rates mean buyers are willing to stretch their spend to secure these dream homes they are looking for,” May added.
Catch tomorrow’s newsletter for part two of Michelle May’s 2021 predictions.