Despite the unpredictable nature of 2020 and its negative effect across a number of sectors, real estate has largely managed to stay strong and steady, producing surprisingly positive outcomes for the industry as a whole. If you’re looking to buy a property this year, take into consideration some of these factors as it may help you wade through a very different 2021 in property.
1) Real Estate Remains Strong Despite the Pandemic
Suffice to say, when the pandemic first hit, panic struck and the repercussions of a global health and economic downtown loomed. This was particularly true as it pertained to the real estate sector. From a local perspective, the Sydney property market, particularly the Inner West, saw a very positive start to 2020. However, it came to a sudden halt as lockdowns, and social distancing became the new norm. We witnessed several businesses being forced to close down and many auctions and open homes being temporarily banned. Because of this, many thought that there was going to be a property crash.
Much to the disbelief of many, the real estate market saw an increase in prices. According to domain.com.au, in 2020, the median price for a three-bedroom house in Drummoyne rose by 10.2% to $1.78m. On the other hand, for a two-bedroom apartment, the median price increased by 0.5% to $953k. Other similar trends can also be seen in Abbotsford, for their three-bedroom apartment, it rose by 35.3% to $2.05m and lastly, for the two-bedroom, it was an increase of 10%.
If you are interested in knowing your suburb’s performance, you can check it out here.
2) Low-Interest Rates that Aren’t Rising Anytime Soon
In November last year, the RBA reduced the official cash rate to 0.1%. This is it’s lowest interest rate ever! When the cut was made, they also released a statement that the RBA would not expect to lift the said rate for at least three years. This is wonderful news for many since it will mean that debts would become cheaper. And not only that, larger banks are now providing fixed interest rates at 2% or lower. Thus, for those who purchased on a mortgage, you don’t have to worry about increases in rates as of the moment. You still have a few years to improve your ability to service the loan.
3) Increase in First-Time Home Buyers in the Market
During 2020, there was a drastic rise of first-time home buyers entering the real estate market. The reason for this is that state and local governments released various grants and schemes. All of it was for assisting people in entering the real estate market for the first time. One example of their grants and schemes would be the stamp duty exemption or reduction. By bringing these kinds of benefits alongside the record low-interest rates, it brought out droves of first-time home buyers.
4) Better Future in the Horizon
This 2021, property prices are predicted to rise again. However, that’s not a reason to feel down because there are many good deals out there. All you have to do is research and work with trusted local real estate agents to buy the right property. Also, even if you think that you’ve pushed your budget to the upper end, there are benefits to this long-term purchase. For instance, in Drummoyne, the median house price was $1,500,000 back in 2014, but last year it was $1,992,000!
Indeed, the real estate sector has proven once again that property is still marching strong, even amidst a pandemic! If you are looking for desirable places to live in, be sure to check out Drummoyne, Abbotsford and Five Dock. If you’re looking for an experienced team that will be your partners in property well into the future, speak with us at Warwick Williams Real Estate. We can help you find some of the best properties for sale in Drummoyne and the surrounding suburbs.
