Australian Housing Market in the Year 2021 and Your Options
The Australian housing market saw a curveball in 2020. Analysts expected a double-digit drop in housing prices. Instead those prices have seen a slight uptick. Thus, analysts are recalibrating their predictions in order to forecast what 2021 may bring to the housing market and Australians.
The Australian Housing Market and You
How the current Australian housing market impacts you depends on your current situation. In 2016, the Australian Institute of Health and Welfare estimated there were 8.3 million households. The AIHW found that 67% of households were homeowners and 32% were renters. The number of homeowners still paying off a mortgage was slightly higher than those who no longer have one. An estimated 2.9 million households had a mortgage while 2.6 million did not. This study takes place once every five years. In between studies, the AIHW uses other tools to monitor changes in the housing market. Income is one while general housing data is another.
Historical Changes in the Australian Housing Market
The Australian homeownership rate has held steady from the 1960s to 2016 at 67–70%. However, homeownership by age bracket has seen a change. In 1971, the home ownership rate for individuals in the 30-34 year old age bracket was 64%. It fell to 50% in 2016. The rate also fell for individuals in the 25-29 year old age bracket. It started at 50% in 1971 and slid to 37% in 2016. Australians who enter retirement are less likely to be homeowners as of 1996, too. The Australian government has stepped in to help those seeking to purchase their first home. From 2018-2019, 43,000 cases received support. The main applicant was between the age of 25 and 44 in 50% of the cases.
The renter interested in purchasing a home for the first time has the opportunity. The current homeowner interested in renovating a portion of the property can, too. The year 2021 may prove to be unpredictable for the housing market again. The good news is that there are several resources readily available.
Navigating the Australian Housing Market
A first time home buyer has several options at their disposal. They include possible grants, buying at auction and engaging with brokers. The first time home buyer may qualify for a fixed, variable or split home loan. Plus, there is plenty of access to professionals like ourselves. We help you prepare, look for a home and make an offer. Individuals who are ready to purchase a second home have options, too. First, we want to know what you are trying to accomplish. Then, our team can present options. For example, a bridging loan may be best for some.
Australian Housing Market Conclusion
Australians who are eager to take the first steps toward homeownership can do so in any housing market condition. Plus, current homeowners can purchase a second home or renovate an existing property. For more information, we at Mortgage House can help you explore your options starting with our home loan calculator.