It’s no surprise that the world has changed since March 2020.
Every industry and every person, in some way, have been affected by Covid-19. Jobs were lost, companies fell, families were split as travel ceased and loved ones fell ill. And for many, it was fatal.
So, in a world full of uncertainty, how has covid changed us and where are we going.
It’s been over 400 Days since the World Health Organisation declared covid-19 a pandemic. We’ve endured multiple lockdowns, states closed off from each other and surprisingly, toilet paper became a hot commodity!
People lost their livelihoods, companies crashed, families were separated for months upon months, and we had to learn a new way to interact with each other.
It has been a life changing series of events, and no doubt, Covid-19 has changed the way we live, forever.
So how has this changed the property market and where are we heading?
Well, in March last year, I shared my opinions about how I believed Covid-19 would affect the property industry, and I’ve put the link in the description below so you can check it out. But I believed the property industry would survive and as we stand here today, we now know, that the industry has gone from strength to strength and is now thriving.
Why? Well, this is due to several factors.
For one, Government Incentives and Initiatives were created to soften the potential blow to the property industry. We had the home builders grant, which encouraged the developments of new home builds and renovations. The first home buyers grant gave a much-needed boost to first home buyers’ deposits, to buy their first home. And of course, JobSeeker & JobKeeper helped people stay in work, and keep their income rolling in.
And when we look at unemployment, many predicted a high unemployment rate of 10% due to Covid. However, due to these incentives, the unemployment rate in March 2020 was 5.4%, and the peak we experienced was only 7.5% in July 2020.
Can you guess what we’re at now? 5.6%! That’s right. We’re almost at our pre-covid levels. In fact, 93% of jobs lost during the peak months last year, have been recovered.
Secondly, the RBA interest rate is historically low, sitting at 0.10%. In fact, the interest rate has decreased since March 2020, with the RBA indicating that they’re committed to keeping it at 0.10% at least, until, 2024. This is fantastic news for anyone thinking about investing or who currently have a mortgage, because it has never been more affordable to buy a home.
And thirdly, supply and demand. With low supply and high demand, the growth of the property market has skyrocketed, which is why we’ve seen several homes in the media sell for well above the asking price.
And you may say “but Jack, you said it’s more affordable to buy a home, how can that be if homes are selling well above their asking prices”? And though yes this is true, there are brand new homes in the market from $400,000 that you can purchase and are not overpriced. And, you’ll experience the same rapid rate of growth. And the earlier you invest, the better, because the longer you hold your property, the more growth you’ll experience.
We’ve been seeing this happen over and over again lately, both in the media and within our clients.
The market is going from strength to strength. In fact, the Australian housing market typically doubles in value every 7 to 10 years, and that’s including during recessions.
Well, the proof is in the pudding. Property is the best way to future proof your family. Even during a global pandemic, it flourished, but also, we as people have flourished.
If this pandemic has taught me anything, it is that family and living your life on your terms is what matters most, and no matter what life throws at you, there is always opportunity. The only question is, do you choose to take advantage of it, or not?