Let's break down the shifts
I find capturing the movements of the various markets so beneficial for my clients, particularly those who are looking to invest outside the local area. In saying that, it’s hard to synthesise a whole nation into one email, so you'll have to excuse me for generalising across whole states, and making this a little city-centric. I’ve also included some key regional performers so you can get a sense of the state of the nation.
So, is property the safe bet it once was? Well on the one hand, we have concerning levels of unemployment which were sitting at 7.4% in June, the highest level since November 1998, meaning that close to 1 million of the working population are unemployed. Though, we’re not at our previous lows, as around 35% of jobs lost in Australia since the start of Covid-19 related lockdowns in March have now been recovered, according to government data*. On the other hand we have Australia’s phenomenal track record of delivering price growth after a recession to look back on.
Five years after each of the most recent economic downturns since the 1970s, house prices in capital cities increased substantially. Property in Australia shows remarkable resilience.
Right now, across the nation, we’re finding that a lack of stock and the swarm of opportunistic buyers is keeping prices positive. Then you’ve got the added support of JobKeeper, JobSeeker, mortgage deferrals and economic stimulus. First home buyers intending to live in their property made up 32% of borrowers in April, Australian Bureau of Statistics data showed. They can also buy a home with only a 5% deposit as taxpayers guarantee the rest of the 20% deposit, under the federal government's $500 million First Home Loan Deposit Scheme.
Looking at home loans, buyers are busy; $16.42 billion in new housing loans were issued in May, in the midst of all this madness. How is that translating to the property market?
Click here to take a closer look at each state and city.
*Disclaimer: This document has been created by Loan Market Pty Ltd (ABN 89 105 230 019, Australian Credit Licence no. 390222). It provides an overview or summary only and it should not be considered a comprehensive statement on any matter. You should before acting in reliance upon this information seek independent professional lending or taxation advice as appropriate specific to your objectives, financial circumstances or needs. Information included has been sourced from third parties and has not been independently verified. Accordingly, Loan Market Pty Ltd is not in any way responsible for nor provides any warranty express or implied as to its accuracy or relevance.