Australian house prices are on the way up, moving into neutral or positive territory for the first time since Covid-19 hit.
First home buyers are driving the demand for houses, lured onto the market by low interest rates, tax cuts and changing preferences for post-lockdown living, according to the latest quarterly report from Domain.
“Consumer confidence has made a remarkable rebound, boosted by the federal budget, success in containing the coronavirus and the prospect of further interest rate cuts,” Domain senior research analyst Nicola Powell said.
“Strong buyer demand has absorbed rapidly rising new supply. With fewer investors and foreign interest, first-home buyers are taking advantage of the reduced competition, government incentives and low mortgage rates.
“With high vacancy rates, weak gross rental yields and fewer opportunities for capital gains, it may be some time before investors return.”
