Click the here for a quick video from Trevor Pickens and Adi Garcia discussing what is happening with the local market.
It may not surprise you to hear that the market is very busy at the moment but it might not be for the reason you think.
According to the latest census data, broadly speaking there are enough homes in Australia and with the lack of significant rise in rental prices in comparison to sale prices, it is not a lack of places to live driving the market.
There are multiple factors involved in pushing up property prices. Winding back the clocks to before the recent COVID-19 pandemic hit, there was already a noticeable increase in overall property price, including in the Vermont and Vermont South area.
There was definitely a drop off in the market during the height of the pandemic but even with a lockdown in place, property was still selling for an increasing price.
As we move forward, we are now seeing a continuation of that original trend as the market plays catch up. Sellers and buyers alike, who have been waiting and watching for the last year, are now keen to enter a growing and competitive market.
The key question is, what is driving that competition?
We all know that interest rates are at an all-time low and lending limits are loosening up but there is a third factor to consider.
Over the last two decades we have seen a rise in owners renting out property.
Many see the halving of the headline rate of capital gains tax in 1999 as the kick off point for the property investment. Buying property became a practical investment strategy and fast-forward to today, investors have become the driving force pushing the market along.
Those who have come through the crisis with their wealth intact are now looking at the rising market and jumping in to buy before the prices climb higher, consequently contributing to the raising prices.
For a more in depth conversation about the current overall and local market trends, contact our office today to speak to one of our sales agents.