This afternoon, the board of the Reserve Bank of Australia met for the first time in 2021 and rang in the new year just as it left the previous one – with no change to official interest rates. It remains at the all-time low of 0.10%pa.
So, what is the Australian economy likely to be in 2021?
Considering the year that 2020 was, the Australian economy has fared better than most countries across the globe. Despite bush fires, pandemic, lockdowns and the inevitable economic hiccups that came with these.
A recent Deloitte report says “2021 looks set to continue the recovery in sectors smashed by the lockdowns and border closures of 2020, allowing the likes of accommodation, food, entertainment and airlines to continue to climb back from the abyss.”.
The same report indicates Australia’s economic recovery will be on the back of consumers, who are predicted to lift their spending by 6 per cent.
And then there’s the housing market.
Australian house prices are set to rise to record highs. The latest figures from CoreLogic show national average property prices are 1% higher than pre-pandemic and 0.7% higher than the previous September 2017 peak. The increase has been across the board, with every city and broader region recording a rise in January.
With more people working from home in 2020, the realisation that the sea/tree change they’ve been dreaming of can be a reality has seen thousands packing up their city life and making the move. The result – demand for property outside the capitals has never been higher, and there are more city properties on the market.
With interest rates at an all-time low, is 2021 the year for the change you’ve been dreaming of? Whether you’re upsizing, downsizing, a first time buyer or just someone who wants a better deal on their mortgage, give us a call – we’re here to help.