As Australians recover from the many unprecedented events of 2020, home buyers and investors are wanting to know whether now is a good time to buy property? But the reality is, this question has many layers and there are many factors to consider when deciding to buy. Individual goals, budgets, credit history, timeframes and circumstances should all contribute to your decision. What is good for one, may be a disaster for another.
Obviously if you have suffered financially or your employment situation has been negatively impacted of late, then right now might not be the right time to buy. But again, individual circumstances differ and there may still lay an opportunity. If purchasing is not currently an option, there may be scope to restructure your finances to place you in a healthier position.
Alternatively, if you are in a secure position and have been saving those pennies, then record low interest rates offer a great opportunity to get into the market or increase your standing. With the RBA suggesting rates will hold steady at record low’s for some time yet, and the banks competing for your dollars, now is as good as ever to get into the market.
Positive market outlook
Even the big four banks have reversed their pessimistic outlook for 2021, with CBA, NAB, Westpac and ANZ all updating their housing market forecasts in the last month, suggesting the positive growth will continue. Utilising data from Core Logic, economists for the big banks suggest dwelling prices will rise between 7-16% in the next two years in Australian capital cities and leading regional areas (source Commonwealth Bank of Australia 2021; NAB Behavioural & Industry Economics 2021; ANZ Research 2021; Core Logic). Whilst certainty cannot be guaranteed in financial and property markets, the optimistic outlook from a generally pessimistic bunch of people is somewhat reassuring.