Will we ever see a year like 2020 again?
Just when we thought we had this Coronavirus thingy under control look what’s happening in Sydney.
But at least we know that we are heading into a post-vaccine world in 2021.
The outbreak of cases in New South Wales reminds us that we’re not out of the woods yet either with our health or economically.
However, over the last nine months in these weekly shows, we have argued that the impact of COVID-19 on the property markets would not be as severe as most commentators were suggesting and that the recovery would be relatively strong and fast.
Each week Dr. Andrew Wilson rationalised that Australia’s fundamentals were sound and this was just a pause in our property markets rather than a dramatic disruption.
Much of the uncertainty about the direction of the economy generally, and the real estate markets, in particular, is now giving way to growing confidence that we are returning to normal conditions, not a new COVID 19 normal as some were suggesting, but conditions as they were prior to the pandemic intervention.
Of course, we are still going to have some of our pre-COVID-19 economic challenges.
Problems such as stagnant wages, low inflation, and low productivity.
Clearly many Australians have been adversely affected.
Some health-wise, while others have had their incomes or their jobs disappear and some businesses are not going to survive, but there certainly is cause for a positive outlook moving into 2021.
However, I believe we must also realistic enough to realise there will be challenges ahead for our economy and some businesses.
In our last chat regular weekly chat for 2021, Dr. Andrew Wilson explains what’s happening in our property markets and shares some good news about our employment figures.
Watch this week’s video as we discuss:
- The latest property market data, including the trends in auction results, new listings, and property sales
- Up to date economic data including share market and Australian Dollar trends
- The latest employment trends and jobs creation
- And Dr Wilson’s commentary on these trends
This week’s economic data provided by Dr. Andrew Wilson
Australia’s economy continued to surprise economists, with the nation’s unemployment rate falling below 7% to 6.8% with nearly 100,000 jobs added in November, largely driven by the strong economic recovery in Victoria as the state emerged from its strict lockdown.
Meanwhile, household wealth hit a new all-time high as housing and financial markets experienced strong gains over the September quarter, with the average wealth hitting $441,649 per person
Watch our video as Dr. Andrew Wilson gives his commentary:
Recovering Sharemarket – Our strong share market signals improved investor sentiment which should only keep improving as our economy recovers.
The Australian Dollar – has been consistently climbing, which is the opposite of what the Reserve Bank was hoping when it lowered interest rates, but this is in part a reflection of the low US dollar.
Watch this week’s video as Dr Andrew Wilson unpacks the latest labour data and explains the interrelationship between:
- The unemployment figures
- Participation rates (those employed and the number of people actively looking for jobs)
- Jobs creation – almost 750,000 Aussies have found a job since June
The latest property data provided by Dr. Andrew Wilson of My Housing Market
Watch our video as Dr. Andrew Wilson gives his commentary on the following data:
Auction clearance rates finished the year very strongly in Sydney.
At these levels, when around 80% of properties put to auction sell under the hammer three weeks in a row, price growth tends to follow.
There are now firm signs that we’ve passed the bottom of the Sydney property market.
And Sydney property sales remain strong, even though they’ve tapered off a little in the week leading into Christmas as would be expected.
As life in Melbourne gets back to normal, more properties are being listed for sale and auction clearance rates finished the year strongly despite 864 properties being taken to auction, showing the depth of buyer interest.
Melbourne property sales have continued to be strong, reflecting pent-up demand.
This situation is likely to continue as Melburnians get back to a more normal life and their confidence increases.
The Brisbane property market is performing very strongly with the number of sales being significantly higher than pre the Coronavirus pandemic. Brisbane will start the new year with a surge of pent up demand for home buyers and investors.
Newly listed homes for sale:
Over the last few months increasing consumer confidence saw more vendors putting their homes on the market for sale, particularly in Victoria.
But now with Christmas coming on, fewer properties are being put on the market as some vendors wait till after the break to sell their properties
Watch our video as Dr. Andrew Wilson gives his commentary on the latest statistics.
Now is the time to take action and set yourself for the opportunities that will present themselves as the market moves on
If you’re confused about the mixed messages in the media you are not alone.
However, you can trust the team at Metropole to provide you with direction, guidance, and results.
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