A lot can happen in one week in our property markets, can’t it?
So here’s a look back at some of the things I read or learned this week, that I believe you should also know.
1. Do we have the best economy in the world?
We’re experiencing a V shape economic recovery.
The attached chart is part of AMP Capital’s economic activity tracker which show how key indicators of an economy are performing and compares us to the EU and the US.
Australia’s economic recovery (blue line) has been V-shaped while the US flattened out after loosing its fight against Coronavirus.
Meanwhile, Europe is heading for a W-shaped recovery.
2. FOMO (fear of missing out) remains the common theme around Australia’s property markets.
Auction clearance rates remain high, prices are continuing to rise supply remains constrained.
With this past weekend a long weekend from the Labour Day public holiday in Victoria today, it was a much quieter weekend for auctions.
The preliminary auction clearance rate was a smidge over 80% at 80.9%, and will end up lower when all the results come in.
Prices have also made further gains, another 0.4% so far in March after 2.1% last month and 2.9% year to date.
Sydney property prices rose 0.7% in the last week alone – up 3.6% in the last quarter and Sydney’s auction market remains strong clearing well over 80% of auctions for the fifth week in a row.
Melbourne property prices rose 0.4% last week, up 3.5% in the last quarter and weekend auction clearance rates remained strong over the long weekend.
Brisbane, Adelaide, and Perth prices all made strong gains over the last month.
3. Sydney Property Values Hit A New Record High
Corelogic report that since housing values found a floor in October last year, Sydney home values have risen 5.7% to reach a new record high today.
The recovery trend in Sydney following the -15.3% decline from July 2017 to May 2019 was interrupted by COVID-19, with housing values falling by -3.0% through the worst of the pandemic.
According to CoreLogic’s daily hedonic home value index., Melbourne dwelling values remain -1.3% below their pre-COVID high and Perth values are still -16.9% lower relative to their 2014 peak.
So while some people are concerned that the soaring property prices are going to lead to a bubble it’s going to burst, in reality, property values haven’t moved up in big capital cities for almost 4 years.
It’s just a normal property cycle doing what it always does.
4. What an amazing turnaround.
Unemployment likely to fall faster than many anticipate
While some media commentators are worried that unemployment will rise when JobKeeper ends, recently the NAB/SEEK employment report suggested that strong growth in job ads signals the possibility that the labour market may tighten faster than expected.
This means unemployment will fall faster than many anticipate.
Now is the time to take action and set yourself for the opportunities that will present themselves as the market moves on
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