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What you need to know about Australian house prices in 2021
Since the onset of the pandemic at the end of 2019, almost every industry has faced new challenges, and the building industry is no different.
Despite the current uncertainties we’re experiencing globally and at home, we want to assure you that at Dennis Family Homes, it’s business as usual, and we’re here to help.
We’ve been building homes for Australian families for over 55 years, so if you’re not sure whether you should buy your new, dream home now or later, we’ll take you through everything you need to know.
Why are house prices still increasing?
There are quite a few different factors that are contributing to the increases across the building industry.
Here are the main reasons:
1. Material shortages: As we explored in our article here, many builders across the country are struggling to secure enough building materials such as timber due to global shipping delays.
The Reserve Bank of Australia has kept interest rates at a record low of 0.1%, so while house prices continue to rise, many buyers are still making the most of very low interest rates on mortgage repayments.
3. Government grants: In 2020, the Federal Government introduced HomeBuilder, a grant system part of the economic response to COVID-19.
Looking further back to 2000, the First Home Owner Grant (FHOG) has also been a major contributor to increasing demand in the new home market.
4. Demand for more spacious homes: Since the earliest lockdowns in March 2020, thousands of Australians moved from working in offices to working from their homes.
Earlier this year, the Australian Bureau of Statistics (ABS) surveyed Australian households and found that 47% of employed Australians expected their work-from-home arrangements to stay the same indefinitely, and 42% also wanted the amount of work from home to stay the same.
And as explained in an article published on domain.com.au about house price growth, Australians are seeking bigger homes to allow for more comfort when working from home.
With more of us working from home either part-time or full-time, many of us require more spacious homes and studies, which also means new homes can cost more to build.
5. Scarce supply of high-value homes: Many Australian property owners have done well in auctions across the country, as shown by consistently high auction clearance rates on CoreLogic.
As explained in a recent article by The ABC, we’ve seen the fastest pace of growth in yearly rise of national house prices since February 2004, with an increase of 16.1% this year, also according to CoreLogic.
Since existing property prices have risen and home value is generally quite high, the market has become more competitive. And this, in turn, has led to a growing sector of new-build homes.
What we’re doing to help you build your new home sooner rather than later
As you can see, the housing market can be hard to understand, but we’ve been in this business for more than five decades, and we’re here to help you navigate your way through the complexities.
After all, this is what we’re passionate about! We love finding the right home to perfectly suit every family’s needs, and that’s exactly what we’re going to do for you as well.
So, if you’ve been waiting to start building your dream family home, we’re going to help you deal with the current landscape of increasing house prices with our special offer.
If you choose to build in Metro Melbourne or Geelong, then you can lock in the price with us for 18 months^, and if you’re going to build in regional Victoria or NSW, then you can lock in the price for 12 months^.
You can also lock in up to $40,000 dollars’ worth of upgrades when you spend $7,990.*
We’re confident that we can help you find a home that suits your family’s needs with our wide range of floor plans and designs. But this offer is available for a limited time, so give us a call on 1800 DENNIS or enquire here to lock in the price of your dream family home today.
*^For more information, please see our terms and conditions here.