Ray White Now | 23 November 2020 - Vol. 28 | Page 8

IF I AM CONSIDERING SELLING , WHY SHOULD I GO TO MARKET NOW ?

SUMMARY
• Top bankers say record low interest rates will save housing market from a population-driven slump .
• Experts confident prices will not rise into bubble territory .
Many of our customers want to know what ’ s happening in the Australian property market now . While we work in the now and use our real-time data , we know there are many risks to the economy in the future . We still believe now is a good time to come to the market .
Australia ’ s top bankers and property experts have all now declared record low interest rates will save the housing market from a population-driven slump while remaining confident prices will not rise into bubble territory . Commonwealth Bank chief executive Matt Comyn said the stability of the housing market served as an attractive stable asset for investors chasing alternatives to record low rates of return . “ There is the potential for people to chase riskier assets . I think the stability of the Australian housing market given the overall savings base is a positive ,” Mr Comyn said last week . “ It feels like there is a lot of demand , there is certainly a lot of application demand , it will be interesting to see if that flows into calendar 2021 ,” he said after estimating a five per cent rise in prices .
Mark Hand , ANZ ’ s head of retail and commercial lending , also said the worst was over for the property market , echoing his economics team , which is forecasting rises in property prices next year after reversing calls for a fall . ANZ has scrapped its forecast for a pandemic-linked 10 per cent drop in house prices and now says a jump in sentiment based on stimulus measures and record-low interest rates will curb the decline , and could even result in “ modest ” price growth this year . ANZ expects strong growth next year – housing prices in Perth are likely to jump 12 per cent , Brisbane 9.5 per cent and Hobart
9.4 per cent . Sydney prices are expected to rise 8.8 per cent – close to the national average – but Melbourne prices will lag , with 7.8 per cent growth .
So right now there ’ s a good opportunity to sell . There ’ s a rush among buyers to secure a home before the end of the year . A shorter than normal hiatus is expected over Christmas this year . This year ’ s selling season will be extended with new listings continually being
“ Record low interest rates will save the housing market from a population-driven slump while remaining confident prices will not rise into bubble territory .” added to the market and auctions being booked right up to Christmas eve . Demand has been strongest from firsttime buyers and upgraders , many of whom are spending money on a house they might otherwise have used on overseas holidays , which have been stopped because of COVID-19 .
The future remains uncertain for many reasons :
• JobKeeper and JobSeeker support winding back by March ;
• International borders remain shut ;
• Unemployment tipped to significantly rise ; and
• The number of properties for sale will increase and create more choice for buyers .
What we do know is market fundamentals right now are helping our clients who are looking to sell . Our data tells us that our auction clearance rates are the strongest they have been since March and we call one in three auctions nationally . So there ’ s a deep buyer pool for sellers to take advantage of right now . Our question is , “ What are you waiting for ?”
8 The information is general information only , not financial advice , and does not take into account your individual objectives , financial situation or needs .