2020 is a unique and trying year. Most of us felt the sensations of joy, sorrow, hope, and resilience. As the year comes to a close, it is also good to hear the good news from the property market that the Australian property price did not fall as steeply as predicted, but rather, in November month, the average Australian property price increased.
Rising Property Prices
According to the latest CoreLogic data, the average Australian property price increased by 0.8% in November to a median house price of over $550,000.00.
If this trend continues, then it is highly likely that the national house price will exceed the price before the COVID-19 pandemic. The average house price in Australia fell by just 2.1% between April and September, according to CoreLogic research.
Melbourne’s Ongoing Recovery
However, CoreLogic points out, that the Melbourne House price is still 5% below their peak level, and it might take some time to recover.
Locally, we can see that the Sydney Property Price increases by 0.4%, while the house price in Melbourne increases by 0.7%.
Brisbane, Adelaide, Hobart, and Canberra all reached record highs in November, according to the index, while Darwin and Canberra recorded the biggest jumps in home values – rising 1.9 percent to medians of $405,857 and $672,866, respectively.
Low Interest Rates Fuel the Market
The lower or low interest rate in Australia might explain why property prices increased rather than decreased in the time of the COVID-19 pandemic.
The Australian government and the medical industry have done a fantastic job in containing the virus.
At the start of the COVID-19 pandemic, many economists thought the house price would fall by as much as 15%. However, this has not happened yet.
Your Trusted Partner in Property Finance
As one of the most specialized and experienced mortgage brokers in the marketplace in the eyes of our customers, we are here to help. Come and talk to one of our friendly and professional home loan brokers. We will help you review your loan situation and come up with an ideal solution to help you get a home loan with a lower interest rate and features that would allow you to reduce your interest expense. Come and talk to us at 1800 841 321.