Challenges of a competitive Real Estate market

Last year has been a wild one.

While the world has been thrust into turmoil, everything is uncertain, and many people decided it was time to buy their first home. Why not take on another challenge to 2020 right? Buying a home has forever been one of many Australians’ life goals. 

Other reasons were modest declines in property prices, reduced investor activity and loads of government incentives such as the HomeBuilder scheme and First Home Loan Deposit Scheme. 

According to the REA Insights Property Outlook Report 2021, first home buyer enquiries was up 62% and investor enquiry was down 5% last year. In November 2020, ABS housing finance showed a record number of owner occupier first home buyer loan commitments since October 2009. 

There was a general increase in attraction towards regional areas led by growth in the mining sector, people looking for more space, returning to less urban ways of life and taking advantage of changed working conditions. Meanwhile, Melbourne CBD saw a disappointing additional 4,341 units vacant year-on-year in December 2020, far more than the rest of Australia. 

Home ownership seems infinitely precious today

This year, this quintessential Aussie dream is now confronted with new challenges: prices are moving quickly; live auctions are well and truly back and auction activity is expected to be higher in 2021; investors are coming back and incentives available to first home buyers are likely to be ceased. 

Dwelling prices are forecasted to lift further 10% in 2020 and another 10% in 2022 said senior economist at Westpac. This was followed by AMP predicting house prices to climb 5-10% in 2021. Commonwealth Bank expects a 9% increase this year and 7% increase in 2022. 

Furthermore, the HomeBuilder Scheme is set to finish by 31st of March – the scheme which provides buyers with $15,000 grants to build a new home or substantially renovate an existing home. 

Does it mean first home buyers must act quick to secure their home? 

Buying a house is a big decision and unfortunately it isn’t something you can just