With the new financial year now well underway, talk about the real estate market being hampered by widespread stock shortages grows ever louder.
Property values are at record highs across Australian capital cities amid intense buyer demand. As I pointed out in my early June newsletter, the FOMO phenomenon has become a defining feature of the 2021 real estate market.
Without question, limited supply is an ongoing issue. It's pushing up house prices across our major cities. A flow on effect of this is that homeowners have become wary of selling because it looks difficult out there to repurchase.
Reports of frenzied bidding at weekend auctions and reserves being toppled are causing many owner-occupiers to reconsider putting their home on the market.
What's to be done about this impasse?
With the 2021-22 financial year now underway, a number of government support programs have been launched and others renewed. But will these measures alone do much for those desperately trying to enter the property market?
Add to the mix the risk of further lockdowns. Whilst interest rates remain historically low (for now), government financial support during the most recent lockdown was patchy for many. That is starting to hurt. Will market sentiment take a hit as a result? Time will tell.
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