Australian property prices have surged at the fastest monthly pace in 32 years. Record-low interest rates, far from making homes more affordable, have caused house and apartment values to climb in every capital city market. So why is that?
Have you ever felt anxious that you are missing out on something that everyone is doing? Well, that is FOMO (fear of missing out) and it is a major factor that is driving property prices right now. You could say that FOMO in the property market is spreading in a similar way to the COVID-19 virus this time last year.
It is clear to see this sudden change in the property market with clearance rates so high across all the major capital cities. With clearance rates so high, demand is far outweighing supply which has seen the Australian property market increase in value at a rate unseen since the late 1980s.
Sydney prices had the most rapid rise, up 3.7 percent in the month of March and 6.7 percent over the first quarter of the year. The strongest quarterly growth since 2015—a time the property market was rising very rapidly off the back of a boom in investor lending. This time the rise in the market is due to a greater owner-occupier presence in the market. Prices in Sydney, Melbourne, Hobart, Canberra, and Brisbane are all at record highs.
Buying property is an emotionally charged business, which is why it’s important to have the right professionals and strategies before you start. Before you get caught in the game of FOMO, go and seek professional advice in order to begin or advance your property portfolio. At Blue Wealth we take away that emotion and the fear of missing out by making sure we are in the right market before anyone else is.