With the economy taking a beating this year, many people have been sitting cautiously on the sidelines, watching and waiting to see what the impact will be on the property market before making any big moves.
Michelle May from Michelle May Buyers Agents argues it will be a very interesting year ahead, not only for first-home buyers, but also for those people who have been priced out of the market.
“The announcement that the Australian Prudential Regulation Authority (APRA) is putting the reins on banks has got a big impact,” May asserts. “Having less money to spend is going to make it tougher.”
“There will be more stock coming on and there will be buyers who have simply been priced out of the market.
“There is also going to be more of a segmentation in the market.
“We are already seeing that with lower clearance rates, there’s many more properties being passed in or withdrawn from sale.
“So I do think there will be more opportunities, as long as people look carefully.”
Despite border closures affecting the ability of international students and foreign skilled workers entering Australia, May remains optimistic that the market will once again flourish.
“Clearance rates in Sydney were low,” May adds. “And there were a lot of empty apartments for rent and for sale.
“As borders start to open up over the coming year, we will see an influx of students and skilled workers, which will see sales that sector pick up.”
One new trend that has emerged for the real estate sector has been the rise in virtual – but May advises having someone on the ground to inspect any property.
“With COVID, it really brought on a whole host of new technologies, which have made it a lot easier,” she says.
“I think it’s going to be a combination of both in-person buying and that continued virtual online inspections.
“It would be better if you have someone on the ground to go through the property, and be on your side and really, really do that critical thinking on your behalf.
“Just do your due diligence.”
For more information, head to Michelle’s website.