House Prices Close Out 2020 Strongly

Despite the predictions of widespread and dramatic falls in home prices in 2020, it appears the exact opposite has unfolded.

The latest data from CoreLogic shows that house prices across the country have finished the year incredibly strong, marked by a 1% increase in home values in the month of December.

Annually, house prices across the nation showed a 3% rise, which comes against a backdrop of uncertainty and widespread lockdowns in some of the major cities of Australia, including both Melbourne and Sydney.

Over the course of the year, we started to see a clear move into regional areas, backed up by CoreLogic data, showing house prices rising by 6.9% across the regional areas of Australia.

Although housing markets are gathering pace, four of the eight capitals are still recording dwelling values lower, relative to their previous peaks. Melbourne home values are still -4.1% below their March 2020 peak and Sydney dwelling values need to recover a further 3.9% before surpassing the previous July 2017 peak. Perth and Darwin’s values remain -19.9% and -25.7% below their 2014 peaks.

While transaction volumes fell away sharply in early 2020 (particularly in March and April where they fell 40%), by years end, transactions were 8% higher than the same time last year.

Similarly, listings only fully started to recover in November, where there were approximately 165,000 properties available for sale, -18% lower relative to the same period in 2019.

According to CoreLogic, one of the key reasons for the turnaround in house prices has been the sharp cuts to interest rates and the easy monetary policy from the RBA that is expected to continue for a number of years.

Although the overall property market remains strong, CoreLogicnotes that there is still some risk ahead, as the end of mortgage holidays and Government stimulus programs, such as JobKeeper and JobSeeker, continue to be wound back.

Why YFA?

We have always aim to provide updated yet useful blogs by adhering to traditional values of transparency and integrity, while continuing to bring steady and consistent performance over the long term. Our motto has always been “Honesty” and Over 20 years, we have always believed that understanding the customer requirement should be the first priority.

We are very passionate about helping individuals and families to identify financial goals with the correct focus on their plans for the long run through our home loan expert. We feel proud and blessed to win awards because of successfully assisting people to achieve financial success. What makes us stand out from others is the utmost trust from our clients who have trusted us.

Our home loan broker in australia is always there to assist you. We love going beyond the bolts of financial crisis in an easier manner just to help people believe that money never blocks their happiness. Our home mortage experts try to the best of our abilities to be a sane, and trusted entity in the sector of Wealth Management via providing services in Finance & Insurance.

Credit Rep Number – 418883 | ABN – 8119516623