Residz Team 2 min read
When the COVID scare first emerged from China back at the start of 2020 a lot of people shrugged it off as no big deal. Once it was declared a pandemic, it was impossible to ignore and all the forecasts were negative. It was the worst threat to public health in 100 years. The economic consequences would be devastating. And the property market would collapse.
Whatever else turned out to be true, the Australian property market was strong enough to buck the worst of the trends and ride out the crisis. Far from the predictions of some economic experts that house prices would fall by anything from 20% to 32% in 2020 with a further downward path in 2021, the market actually grew, and continues to do so. This is especially true of property in Sydney but it's the same story in every Australian city and even in more rural areas, the trend is upwards.
The prices of property in Sydney are extremely healthy today, and with no reason to expect that to change, we can honestly say that this is a very good time to be selling. Let's look at some of the reasons why.
Interest Rates
One of the biggest disincentives for prospective buyers is punitive interest rates but in Australia they are currently at a historic low of just 0.1 %. It's never been cheaper to borrow. What's more, this situation is replicated all over the world and because the global economy and financial markets are interdependent, that stability means there is no external pressure for rates to rise. Even taken in isolation, the condition of the Australian economy, with its COVID-related increase in unemployment, will need to keep low interest rates for the duration.
Supply and Demand
With a finite number of properties for sale in Sydney but a growing number of buyers with access to cheap loans, the simple mechanics of economics are playing out: high demand and low supply equals increased prices.
Government Action
It's not all a question of free market economics either. At the same time, the government is committed to a number of grant and subsidy schemes to encourage buyers and thereby further stimulate the market. The First Home Loan Deposit Scheme in particular is driving potential first-time buyers to make the leap into home ownership by helping them to buy with just a 5% deposit instead of the standard 20%. This means that properties for sale in Sydney are attracting more genuine interest than ever before.
The Lockdown Dividend
Understandably, the uncertain economic future which the pandemic seemed to promise made Australians reluctant to spend, especially with the recession so fresh in our memories. That means one of the unexpected consequences of the virus is a lot more money sitting in saving accounts which buyers are now confident enough to spend.
All these factors have coincided to create the perfect conditions for sellers and we have an enviable range of highly desirable properties for sale in Sydney. Bricks and mortar have always been among the soundest of investments and if you're ready to see a return on yours and take that next step on the property ladder then why not add your home to our list?