Article published 20 December 2021
It has been another extraordinary year. The pandemic has dragged on, driving New South Wales and Victoria into extensive lockdowns, and state borders were closed – in some cases for months. But there’s been plenty of lively action in the home loan and property markets.
Let’s take a look at the key developments of 2021 – and what may lie ahead.
Property values kept climbing...but the tide may be turning
Despite all the upheaval of the pandemic, the housing market didn’t miss a beat, recording gains of 22% nationally in the 12 months to November 20211.
However, according to the latest REA PropTrack Housing Market Indicators Report2, there are signs that some of the heat is coming out of the market.
REA notes, “We are still seeing many active buyers, but for the first time since the pandemic began, the strong ramp up in new listings has given them more choice. Buyers continue to outweigh sellers, but the gap is narrowing, meaning the strength of the sellers’ market is softening”2.
That could be the good news first home buyers, who have been waiting for their opportunity to jump into the market!
Investors ramped up
2021 saw investors waste no time snaring their slice of the property market, with loans to investors rising 89.6% over the 12 months to October 20213.
What was different this time around is that many investors sought the affordability of regional areas.
That’s according to REA’s 2021 PropTrack Regional Australia report. It found the top three most-enquired investor suburbs across regional locations were Surfers Paradise, Broadbeach (both QLD) and Wollongong (NSW).