One of the most interesting things about working in real estate is studying the shifts in our local market and what is causing them.
The key factors which affect real estate markets and determine supply and demand are interest rates, the economic cycle, demographics and government policy.
2020 saw a new variable enter the market - COVID 19. The COVID virus has certainly presented many of us with huge challenges to our businesses, our employment and income, family dynamics, re-adjusting our way of living and mental health. And these changes which were necessary to managing the virus have had a significant impact on the real estate market. Being stuck at home during lockdown has brought our homes to front of mind position. Overseas travel is out and many people are spending their travel dollars on home improvements, renovations, gardens and interiors. All you have to do is take a trip to the nursery or hardware as proof of this and witness the large crowds shopping. Earlier on when our Nation was grappling with how to deal with this virus and its knock on effects to our health, economy and community, expert and media predictions were for a correction in our real estate market. This didn't happen and instead we have seen growth in the market and sales prices increase.
So what are these trends and why are they happening?
Working from home during COVID has had a significant impact on people's mindset. One result of this change in the way we work is that many buyers are looking for a bigger family home to include not just one but in some cases two studies. Families require more recreational space so that they can work and relax together. This has created demand for large family homes. Lifestyle properties such as beach side or water front properties are in high demand and we are seeing record prices being achieved. In many cases buyers who had a long term plan to pursue these types of properties have moved plans forward to secure a home which feels like a permanent holiday. Working from home and not in the CBD has also made buyers re-consider whether they really need to live close to the city. Many of current buyers are hailing from the Inner West and Eastern Suburbs and trading their properties there for a more affordable coastal lifestyle property in the Shire.
The restrictions on inter-state travel have also had an impact on our property market. Many locals who moved to places like Queensland are suffering from not having seen family in NSW and we are seeing a return of these buyers to the Shire. Another strong trend is the fact that many Australian expatriates are returning home from working overseas and opting to live in their home country again. The virus has highlighted the fact that Australians have managed the pandemic exceptionally well compared to many other Nations and Aussies are returning from overseas posts at a large rate. This buyer group are certainly competitive and often looking for high end, lifestyle properties to secure. At the same time - property in the Shire is in short supply as many residents decide that with our pristine beaches and beautiful waterways, natural bushland and an abundance of recreational activities where else would you want to be when staying home is encouraged.
The good news for you as a property owner is that the local market is incredibly buoyant and buyer demand is strong. Buyer numbers at our open for inspections are high, length of time on market is shorter and prices being achieved in the Shire are healthy. The major real estate internet portals are recording record numbers of hits to their websites. As interest rates continue to be at a record low and lenders are responding responsibly we can be assured that our local market is in good shape as we welcome both Shire buyers and out of area purchasers to share what we have on offer.