Is fear of missing out in the property market is spreading like COVID-19 did this time last year? It was reported on 1st April 2021 that Australian property prices had surged at the fastest monthly pace in 32 years. And no, it wasn’t an April Fool’s Day gag.
A lot of people are suggesting that fear of missing out is certainly a factor. Demand for property consistently outstrips the advertised supply of homes. Low, low stocks, along with properties flying off the market shelves, are fuelling urgency and the sense of FOMO amongst buyers.
In March, property prices hit record highs in 61 of Australia’s 88 sub-markets.
Here’s a snapshot from CoreLogic: Sydney up 4.3 per cent to $1,112,671; Melbourne up 2.6 per cent to $859,097; Brisbane up 2.6 per cent to $607,969; Adelaide up 1.6 per cent to $518,692; Perth up 1.8 per cent to $527,833; Hobart up 3 per cent to $584,974; Darwin up 1.9 per cent to $519,575; Canberra up 3.3 per cent to $819,707. This surge in prices is making things tough for aspiring buyers and renters, with homes in some cases clearly their reach. Record-low interest rates are not actually making homes more affordable. Instead, the scenario has contributed to house and apartment values climbing in every capital city market and in many regional areas.
Higher house prices have put off investors in many cases. Less rentals available tends to mean increasing rents. Double whammy. Homes are unaffordable to buy, equally unaffordable to rent. And things could get worse as the help many people have had through mortgage repayments holidays, boosts and other forms of assistance dry up. Some say it could be the biggest economic shock since the pandemic itself.
As individuals, we need to be aware of people hurting. And governments at all levels need to be ahead of the game when it comes to making sure people have shelter options.