08
JANUARY EDITION
IF I AM CONSIDERING SELLING , WHY GO TO MARKET NOW ?
SUMMARY
• Residential real estate performed strongly in 2020 .
• Treasurer Josh Frydenberg warns the economy is “ not out the woods yet ”.
Many of our customers want to know what ’ s happening in the Australian property market . While we know there are still broad risks to the economy , we still believe now is a good time to come to the market given the basic fundamentals are sound . Buyer demand has never been so strong and all the indicators continue to point to continued growth .
As it turns out , residential real estate actually beat all other asset classes in 2020 . Across all metro and nonmetro ( regional ) markets , Australian home values appreciated three per cent in 2020 . If you then add in the national gross rental yield , you get an impressive total return of 6.60 per cent for the year . If you are interested to know the All Ordinaries Index finished up 0.71 per cent over 2020 , and the RBA actual cash rate finished at 0.25 per cent . The surge in property values was presumably a huge surprise to all the analysts , economists and fund managers who predicted house prices would fall 10 per cent , 15 per cent , 20 per cent or even 30 per cent .
While 2021 is bound to be bumpy , we are well placed to handle any scenario thrown at us . There are grounds to believe the global economy can embark on a very robust recovery this year . Highly-effective vaccines have started being rolled out internationally with plans in place for Australia , which should assist in normalising activity and confidence in the world .
The federal government sees housing as an asset class too big to fall and it is hoped that the Federal Treasurer will likely extend the JobKeeper supplement . There ’ s been a chorus of cries from the tourism and retail sectors for ongoing assistance . Treasurer Josh Frydenberg last week said he felt very optimistic about the economy recovering from the pandemic in 2021 but warned Australia is “ not out the woods yet ”.