Just a tick over 12 months ago, Australian residential property was on its knees, according to some market obituaries.
So, investors and owner-occupiers will be popping champagne corks with the news Australia's much-loved asset class has cracked $8 trillion for the first time.
According to CoreLogic, this new record means Australian residential property is around four times the size of Australia's GDP and about $1 trillion more than the value of the ASX, superannuation savings and commercial real estate combined. Some sources suggest the share market is worth closer to $2 trillion.
Best market in 30 years
National home values rose 6.8% in the past three months, which is the highest quarterly dwelling growth rate since December 1988. This biggest rise in more than three decades is another factor underpinning the value of Australia's bricks and mortar market.
The increase in the residential real estate market value has put Australian homeowners in a strong equity position. The RBA estimates just 1.3% of housing loans to be in a negative equity position at the start of 2021, said CoreLogic head of research, Eliza Owen.
Budget on a strong winter market
Angus Raine, Executive Chairman Raine & Horne said there is still plenty more to come, and winter 2021 will be a fantastic time for homeowners and investors to realise some capital gains.
"It's a real estate myth that the property market shifts into hibernation for the winter months. Buyer numbers don't seem to be letting up with days on the market at record lows and auction clearance rates at record highs," said Angus.
"Moreover, the Budget announcement to extend the downsizer superannuation scheme to those aged between 60-64 removes another excuse for more Baby Boomers to stay put in large family homes.
The downsizer super contribution enables those aged over 60 to make $300,000 after-tax) contribution into superannuation from the sale of a home. For couples who own a home together, each partner can make a $300,000 non-concessional contribution that will turbo charge retirement savings.
The extension of the downsizer super contribution combined with robust market conditions means those vendors who choose to ignore a winter sale will be missing an excellent opportunity to build wealth, warns Angus.
Don’t expect buyer demand to chill
Many buyers seek a new home because they've changed jobs, have a growing family, are moving schools, or have decided to downsize, Angus advises.
"These buying decisions occur regardless of whether its winter or spring and as a result, there are buyers and investors seeking property year-round."
Angus adds, "Old myths die hard, and talk that spring is a better time than winter to sell is not always right."
If you’re planning sale this winter, contact your local Raine & Horne agent for an obligation free appraisal of the value of your property.