Unless you have been living under a rock or in lockdown (sorry Melbourne), you will know the Canberra property market has been running hot for some time now. Recent Corelogic data has shown that the ACT reached new highs every month since April 2019, this is definitely making it difficult for some buyers to enter the market.
Canberra is renowned for having strong employment and wages, and now combined with low interest rates and covid enforced saving (spending was difficult on things like holidays which would reduce discretionary income) it has created a market that has more buyers than sellers. Stock is limited thereby increasing demand and pushing up purchase prices month after month. Some potential buyers have given up on the constant missing out on properties and ended up buying vacant blocks in new areas of Googong (NSW) and Strathnairn (ACT) that won’t be subdivided until early to mid-next year. These buyers are much happier now and can sit and wait for the new suburbs to be developed and move into their homes at the end of 2022 rather than deal with the frustration of being out-priced or have reduced choice on what they can buy.
Currently the RBA and APRA have seen no reason to step in now or in the near future, with RBA’s most recent interest rate decision noting that they are happy as long as lending standards are maintained. This seems to be proven by the slow assessment & approval times of the major lenders, but that could because they are overwhelmed with volume rather than being prudent, time will tell.
In light of the above, our advice to buyers is that its best to be flexible with your purchase price and location as well as ensuring your lending approvals are up to date.