Well, another end of a financial year has drawn to a close, So, what can we expect in the New Financial Year?
A little over a year ago now, we were emerging from the first wave of COVID-19, unsure of its full impact on the real estate industry. While most of the country was heavily impacted due to the lockdowns the real estate industry saw unprecedented increases in enquiries and demand. Especially from our city dwellers looking to exit the city and looking to our regional location looking for a safer and better lifestyle. Coupled on top that with restrictions to international travel which has seen an increased and demand to our domestic and regional markets. The surge and the appetite for property across Australia, and in particular Cairns, was almost impossible to predict.
The economy is performing better than one would have expected, and above what the RBA anticipated when they dropped interested rates to the historic lows we enjoy today. Confidence, combined with a shortage of housing stock, as well as the continuous high demand, has produced stellar results for our industry in 2020/2021 financial year. And with a lot of experts predicting a similar market for the upcoming 2021 – 2022 year ahead.
In Cairns it is not uncommon to hear stories that properties are being snapped up as soon as they hit the market, or in some cases, being sold by agents before even making it to the open market. Stock levels across the board, due to the demand are significantly lower than we have seen, although moving into 2022 I feel levels will increase once again with more people looking to sell and ride the property wave while they can.
Lockdowns have prompted many to upgrade their existing homes, downsize or opt for a regional and lifestyle change. We are also seeing a swell of ex-pats returning to Australia that has also kept the market very busy, particularly in the high-end market. Our interstate buyers are looking to regional Australia for more affordable properties, safer locations for their families, as well as that desired lifestyle change.
As I mentioned in my previous newsletter, the government stimulus packages, have without question, gone a long way in assisting the real estate industry. The building industry is extremely busy, the first home buyers’ market has been strong, generated by the first homeowner's grants available, and the confidence with investors has returned, with higher returns, lower vacancy rates and better borrowing capabilities.
The confidence right across the industry is also helped along by the RBA holding interest rates at a historic low of just 0.1 percent, this is reassuring buyers looking to take advantage of the low rates while they can. I feel this will continue well into the new financial year. All indicators and predictions point towards an increase to the interest rates roughly November 2022, although there is still a lot of water to flow under the bridge from now till then. And with the country once again on tenterhooks with more covid outbreaks right across all states.
Happy Financial New Year everyone!!!!