Real estate agents need to be aware of what’s new and trending in the real estate industry if they want to provide the best advice and outcomes for their clients.
There’s no doubt that agents would be more equipped to make wise and smart recommendations and advice to first-time home buyers and those wanting to venture into property investment.
However, agents need to always have their eyes and ears open to catch the latest news and updates about anything and everything about real estate.
It may seem time-consuming and requires a lot of effort to do so, but it does not have to be.
While there are a lot of changes and updates in Australia’s real estate industry, it is relatively easy to monitor and keep track of industry developments as long as you can allocate some time and a bit of energy to stay on track.
Current trends and updates
Whether it’s building, buying, renovating, or selling real estate property it pays to know what’s happening around the industry so that agents can provide the best guidance on which directions their clients can take to make the most out of their real estate journeys.
Throughout 2021, Australia saw a boom in the housing market thanks to great gains provided by low-interest rates and a shortage in the supply of homes that increased overall value in the industry.
From November 2021 and until the latest industry figures for this year, property values increased by 22.2 per cent and on a larger scale residential real estate reached an estimated record value of 9.4 trillion dollars in twelve months.
Since the start of the year, a lot of houses throughout Australia are under construction, with a lot of buyers opting for detached units driven by the demand for new hybrid working conditions since the gradual global recovery from the COVID-19 pandemic.
During the past year, it can be noted that housing prices have more than twice as rapidly jacked up prices especially in capital cities and suburban communities, with most of the demand going to homes in larger coastal centres situation near capital cities.
However, industry experts forecast that prices may begin to flatline during the second half of 2022, which could further drop by 2023 as interest rates being to rise due to economic recovery.
Here are some valuable snippets of market trends collectively gathered during the last year that can be handy for real estate agents.
With the incidence of lockdown measures in Melbourne, many residents have been looking at moving to Moama, Adelaide and Hobart.
Hobart and Brisbane are expected to take the lead in terms of price growth due to increasing demand for homes and a shortage of supply on inventory for sale. Dwelling prices are expected to increase by 6 to 9 per cent in these capital cities.
While Sydney holds the record for having the most expensive market throughout Australia, it is expected to be tied with Melbourne for a decline in growth rate this year.
General trends throughout Australia
Several trends influence the real estate market throughout Australia and can be helpful when assessing or researching options for clients.
Based on high profile industry statistics, research and figures, here are key trends that carry a lot of weight for the industry at the moment.
Increase in rent rates
With the global economy moving towards recovery after the COVID-19 pandemic lockdowns and restriction measures, interest rates and market demand will continue to rise as investors and homeowners are moving towards achieving more control over their financial standing and being able to prepare for their future.
Expected growth in regional and coastal areas
Evolving work conditions such as the hybrid and work from home arrangements, as well as retirement planning, more people have chosen to seriously consider moving to coastal and regional regions over the next several years.
The trend also predicts employment growth to double in these locations and economic activity will be spurred in these areas.
The trend also sees more people investing or downsizing which has been driven by pandemic conditions and may continue at much higher levels.
These are just some of the few trends that are influencing the real estate market and may linger on for the next two to five years based on prevailing economic and global conditions.
So, if you are an agent looking to provide the best outcome to your clients, always make sure to have information and data such as these on top of your mind to help you stay relevant and provide the best solutions.