2021 Housing Predictions

  • The only certainty is uncertainty
  • 2021 is the year for first home buyers
    • Everyone is fixing and first home buyers are the first in line to leverage the historically low interest rates.
  • Say goodbye to city living
    • This year we will see many people moving out of the CBD as they continue to have the option to work from home 
  • Home offices are the new MUST-HAVE 
  • The year for construction
    • Some of our state governments have announced incentives to increase infrastructure and commercial construction of government building projects.
  • Single women are still buying
    • Research is showing that single women are leaping into property ownership with 35 per cent of all applications to lenders for mortgages being made by single people and 50 per cent of these are now women. Beyond purchasing a home, many of these women are directing any surplus funds they have into property investing.
  • Extended Schemes
    • Schemes have already been extended, some twice, so there’s a chance they may be extended further, but that remains to be seen. Treasury estimates 1.75 million people will still be on JobKeeper in the March 2021 quarter.
  • House prices to increase
    • The major banks have also upgraded their forecasts. NAB now expects prices to increase by 5 per cent over 2021 and 6 per cent over 2022, while Westpac predicts double digit growth in the capital cities over the next two years. According to property analysts SQM Research, low interest rates and aggressive government stimulus will provide a significant boost to Australia’s major markets next year, with average prices in the capital cities expected to surge by 5 to 9 per cent
  • Cash rate
    • The RBA has made it clear on several occasions that the cash rate won’t increase until both inflation and employment are within its target range, and that’s unlikely to occur for at least another three years.
  • Cashback Deals
    • With so much competition in the home loan space, many banks and lenders are looking beyond pricing to attract borrowers. Going into the new year, there’s a good chance we’ll see more lenders offering things like cashback deals and waivers on lenders’ mortgage insurance for first home buyers.