According to CoreLogic research, dwelling values nationwide increased by 0.4% during October 2020, ending a five month downtrend. Every capital city except for Melbourne posted a rise during the month. Melbourne had the smallest decline in dwelling values (-0.2%) since Covid-19.
Why is this good new for conveyancers? Rising home values encourage more vendors to enter the market. Vendors dislike selling in a market with declining prices. Buyers have an incentive to hurry up and buy because the longer they wait the more they will have to pay. Whatever the dominant factor, the result has been fairly consistent over many years: rising property prices are associated with increasing property sales volumes.
Consumer sentiment is playing its part in the property market with an upward surge in confidence over October 2020.
CoreLogic estimates that settled sales were higher by 7% in October 2020 compared to September 2020.
Sydney auction clearance rates reached levels last seen in early March 2020.
The RBA official interest rate is now just 0.1%. Mortgage rates are playing their part in pushing dwelling values higher.
The number one risk for all of this to unravel: Legal Practice Intelligence is watching the rate of inflation.