The pace of property value growth in the local property market has been near record breaking this year, with the national growth rate in March alone being the fastest since 1988. There is no secret to what the driving factors have been. Record low mortgage rates, a surge in consumer confidence, home buying and building incentives and low supply levels, have all culminated to create a new FOMO amongst buyers.
Moving into the second quarter of 2021 there are certainly many questions as to how things are expected to unfold and whether this FOMO, and trend of reserves being smashed, will continue. With the RBA leaving the cash rate on hold at 0.1% they have certainly made their stance clear in that they have no intention of raising the cash rate “until actual inflation is substantially within 2 and 3 per cent target range” – RBA minutes. Further, APRA has also shown no signs of intervention as they have not cited any signs of irresponsible lending. By this, buyers and sellers are able to proceed to trade with confidence that the lending conditions will remain unchanged.
Supply, therefore, will be a major factor in future market trends as home owners continue to be tempted by the flurry of excellent results all around them. What is not routinely mentioned is that these same home owners would then be purchasing back into the same market. By this, many of those who had been planning to upsize are choosing to reinvest in their current home and either extend, or add a floor, to meet their growing needs. What this market is most favouring is down sizers, investors currently renting out additional houses, and those with land which has development potential. These are the current winners.
Taking on a local perspective the Epping market continues to remain in excellent shape, with both listing volumes and average prices increasing. At present the average medium house price in Epping sits at $2,000,000 (Data supplied by Core Logic) and although a number of results are yet to be disclosed the most notable sale to occur during the month of February is that of 8 Grandview Parade attaining a sale price of $3,200,000.
If you’ve been holding out for a new price appraisal, now is the time to ask by contacting Peter Hunt on 0434 821 219