The housing market in Australia traditionally slows down during the winter months, however we are continuing to see a spike in the housing market with no signs of it slowing down anytime soon.
There is a strong demand for properties across NSW. The world seems to have changed with house hunters looking to either settle down or invest in beachside suburbs.
Properties further away from the city are viewed with new perspective that has come from the COVID pandemic, showcasing that you can work away from the city scene.
Investor activity within the housing market has significantly increased with records indicating that this year set a new record for the highest amount of money borrowed (approximately $9.127 billion) to purchase investment properties since mid-2015.
The Australian Bureau of Statistics has shown that although investor activity has increased each month in 2021, first home buying has declined relative to investors, and is continuing to do so. This may be a factor of owner-occupiers being priced out of the market by property investors borrowing money at historically low interest rates.
The investment landscape is continuing to boom despite the current COVID19 outbreaks. Due to negative population growth, affected by international border closures, investors are more aware of their job security position, and this is viewed positively by lenders who approve loans for investment.
With the value of homes increasing by 17.7% across regions last year, as well as the average national weekly rent increasing by 6.6%, you can see why investors are eager to purchase properties in the current climate.
As discussed above, the increase in property values is not necessarily good for everyone and is discouraging first home buyers to begin their property journey as they compete with a red-hot investment market. The demand vs supply ratio is falling short over the past months and that will continue to drive prices up.