Weekly Property News 22nd Edition 2021
“A year in review and a new horizon”
Hi Guys, it’s Dean OBrien from OBrien Real Estate with the 22nd edition of the Property News for 2021 where real estate information is on the house.
In 2020 Australia experienced its first recession in 28 years but over the last 12 months, the Australian economy has experienced the sharpest recovery since the 1970s thanks to government stimulus and the restriction of the spread of Covid-19. While COVID-19 still dominates our landscape, countries outside of Australia are still experiencing virus breakouts but the good news is that effective vaccines are being distributed across the globe, the global economy is tipped to rebound by 6.3 percent over 2021.
The Australian economy continues to surprise and much has to do with the strength of the job market. The latest data shows that in May that 115,200 jobs were created. The jobless rate now stands at 5.1 percent. The RBA remains committed to leaving the cash rate where it is through to 2024. Australia’s 2020 deaths dropped to a 2 year low, however, the pandemic population plunge is the lowest growth since 1916.
Victoria was the country’s worst-performing state in 2020 with population growth at just 0.01 percent, over 30,000 Victorians so far having left Victoria. Birth rates in Australia are also at 13-year lows.
A record number of homes will be built in 2021. And this increased supply, together with the restraint on demand through the closure of the foreign borders will serve to slow the pace of home prices. That said, CBA Group economists still expect national home prices to lift by a combined 14 per cent in 2020 and 2021.
The Reserve Bank wants to see annual inflation sustainably between 2 to 3 percent, currently at only 1.1 percent. The RBA also wants to see growth in annual wages lifting to 3 percent, and the RBA is aiming for a jobless rate near 4 percent.
The Numbers – Moving onto the numbers for the week. Auction wise Victoria recorded 496 auction results, with 417 of those selling at auction with 68 passing in and 8 withdrawals overall giving us a healthy 85% clearance. Private sale treaty numbers saw 1207 sales across the state. Overall the numbers are healthy for the winter market.
That’s all for this week, I’m Dean OBrien and remember the information provided is of a general nature you should always seek independent legal, financial, taxation or other advice in relation to your unique circumstances.