The Hunter property market is expected to grow strongly in 2021
If you’ve been looking for a home in the Newcastle region over the past few months, you won’t be surprised to hear that 2021 is likely to be a big year for property.
Prices are rising, buyers are out in force and homes are getting snapped up fast.
According to SQM Research stats for the Hunter region, over the past 12 months, median asking prices have increased by:
- 3% for houses (from $549,875 to $573,689)
- 8% for units (from $388,695 to $415,048)
Property prices are expected to significantly increase during 2021.
Why? Well, one reason is there’s less stock on market – and lower supply means more demand. From January 2020 to January 2021, the number of for-sale properties in the Hunter fell by 26.5%, from 8,398 to 6,173.
Buyers have also been responding positively to three government policies:
- The federal government’s First Home Loan Deposit Scheme (ongoing)
- The federal government’s HomeBuilder scheme (ends 31 March 2021)
- The state government’s stamp duty discount (ends 31 July 2021)
Record-low interest rates are also stoking buyer demand. It’s possible to get a home loan that has an interest rate starting with a ‘1’ – something I never thought I’d see in my lifetime. And rates are unlikely to rise anytime soon, with Reserve Bank of Australia governor Philip Lowe confirming in early February that the RBA is unlikely to raise official interest rates before 2024.
Property investors are thriving right now
The numbers also look good for anyone who has bought, or is thinking about buying, an investment property in the Hunter region.
SQM Research data shows average weekly rents have climbed sharply over the past 12 months:
- 3% for houses (from $420 to $434)
- 1% for units (from $350 to $382)
Why? It’s the old story of supply and demand. Just as it’s become harder for buyers to find properties, it’s also become harder for tenants. The vacancy rate (the share of investment properties without a tenant) fell from 1.8% in December 2019 to 0.7% in December 2020. So the Hunter is very much a landlord’s market right now.
The sooner you buy, the less you’ll pay
If you’re thinking about buying this year, the sooner you visit a mortgage broker to get your finance sorted, the better.
If property prices grow 7% during the year, a property that cost you $500,000 at the start of the year would cost you $535,000 at the end of the year.
So delaying could be very costly.
Planning to buy in 2021? Get the advice you need by working with Newy Finance.
We’ve helped hundreds of Novocastrians get finance – and we can help you too. Request a call back here Contact us or call Jon Jones on 0410 699 969.