More price rises tipped
If you chat to anyone around Melbourne about the property market at the moment, chances are one of the first topics that will come up is the number of property sales that are still being completed despite the challenges of the lockdown restrictions. It’s been source of surprise for many.
We need to remember that these results are yet another indication of the strong levels of buyer demand across the market. Without that high level of confidence, it’s unlikely that we would see as many SOLD signs going up without the ability to physically go inside the property prior to making an offer.
As we’ve said before, it is the ongoing imbalance between the huge number of buyers keen to purchase and the limited supply of properties for sale that continues to push prices higher. But it has been interesting to see that even the Banks have been raising their property price forecasts in response to this demand, with the ANZ being the latest to adjust their outlook this week.
Despite several states and territories being affected by lockdowns, the ANZ raised their house price forecasts for most of Australia’s capital cities this week. They are now tipping that Melbourne’s house prices will rise by an average of 20 per cent this year. What’s more, Sydney, Brisbane, Canberra and Hobart have also been tipped to see rises of between 20 and 24 per cent in 2021.
The Senior Economist at ANZ, Felicity Emmett, made some interesting comments. She was quoted this week as saying, “We’ve updated our forecasts because of how strong prices have been; that includes through the lockdown period. We did think by this time of the year that the momentum in prices would have pulled back.”
She also added, “In Melbourne, where the clearance rate had been harder hit by lockdown restrictions, which include a complete ban on property inspections, prices are still holding up well.”
She said she expected prices would continue to fare better than they had during the city’s extended lockdown last year, when there was greater uncertainty around the impact of the pandemic.
We would expect that forecasts like this will give property owners in the bayside suburbs even more reason to consider making their next move in the property market during the coming Spring selling season. With this in mind, the next week or two could be an ideal time to discuss your plans with an experienced local agent and to set some plans in place to ensure you don’t miss the boat when lockdown restrictions are eased.
So don’t hesitate to give us a call at Barry Plant Frankston this week on 9781 3100 to ensure you have the right strategy in place.
Regards,
Barry Plant Real Estate
Frankston & Cranbourne