Market Update

Imagine, if you will, the property market in 2021 without a global pandemic repeatedly locking the state down and keeping international clientele from our shores. If the market’s this healthy during such restrictions, then the eventual cessation of this madness can only make it even more robust, surely.

But do we detect the State Government losing the confidence of the people? Is two cases a day a potential cataclysm, as they’re telling us?

Suffice to say that a year ago my neighbour bought a Brett Sutton doona cover, showing a picture of the Chief Health Officer’s smiling face about the same size as King Kong’s. She thought it was cool. But she won’t even hang it out to dry on a sunny day now. She crams the thing in the tumble dryer so the neighbours won’t know.

On Wednesday The Reserve Bank of Australia met and agreed to keep the cash rate at its historic low of 0.1 per cent. The former Labour Trade Minister Craig Emerson, now an independent economic advisor, observed, “We won’t see any change in interest rates until unemployment is down to below four per cent, and that won’t happen for three or four years.” By and large this belief is shared by the market and has allowed property buyers to remain confident about the post-pandemic recovery.

“This provides one of the strong conditions needed for anyone seeking to enter the property market, particularly first-home buyers. This, combined with State and Federal governments committed to maintaining the strength of the current market, assures confidence for sellers and purchasers of both Residential Investment and Commercial Investment,” Mr Emerson said. The RBA has consistently said house prices are not its concern. “They’ve made that abundantly clear. If they do become a problem, they’d argue for other policy levers, like macro-prudential regulations that aren’t in the domain of the Reserve Bank.” The market would seem to be on a long, strong rise, a perfect time to buy property.

Using our discreet sales methodology, at Abercromby’s our sales team has recently successfully sold these fine properties:

  • 44 Campbell Road, Deepdene
  • 78 Adeney Avenue, Kew
  • 19-21 Lalbert Crescent, Prahran
  • 13-15 Victor Road, Glen Iris
  • 51 Thanet Street, Malvern

No better time than now to list your own property and allow Abercromby’s marketing team, using its connections and experience, to maximize its sale potential.

Approvals for housing finance is at record levels, indicating that more people than ever before are moving into property, both first-home buyers and investors. As mentioned above the cash rate isn’t going north in the foreseeable future.

Ninety-three percent of the jobs that were wiped out during last year’s episode of the Covid pandemic have returned. At this stage a two-week lockdown, while extremely annoying, isn’t going to dent the market.

The Commonwealth Bank ­recently estimated Australian households, having had travel and social life severely diminished for a year, saved over $120 billion more than normal in the last three quarters of 2020. The CBA has predicted this money will be spent in the coming years, much of it in property markets. A kind of forced savings that will pay off in real estate. So buyer demand will remain healthy, as will prices. Now’s the time to list your property and allow Abercromby’s to unveil a perfect, individually tuned, sales strategy.