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Property Value Report – October

October 5, 2020 Uncategorised

Could the property market already be making a comeback? Australia’s home value index saw its fifth consecutive month of decline, by a marginal 0.1%. However, this has been the smallest decline since values started to reduce commencing May this year.

Chief experts and economists are now conveying a sense of optimism and expecting to see confidence restored in the national housing market. With restrictions beginning to lift in Metropolitan Melbourne, one-on-one inspections as well as one-on-one property valuations are once again permitted. Following on from this announcement we are already seeing activity lift and our Hodges property professionals are eager to address the pent-up demand that has been building amongst our customers over the last few months.

Buyer enquiries and search volumes for property have remained high throughout the COVID period. We have many active buyers in our database ready and waiting to make their next move on their property journey. We have already experienced a surge and increased volume of stock ready to hit the market. We look forward to meeting these demands and matching homes to families once again.

There are still many variables that can potentially manipulate and influence the housing market, such as fiscal support and high unemployment rates. However, there are an array of factors supporting improved market conditions including record low interest rates, Government initiatives and increasing consumer sentiment following the hardship of the pandemic.

 

Definitions:

YTD – Year to date (YTD) refers to the period commencing the first day of the current calendar year up to the current date and the percentage (%) change from then until now.

Gross Yield – The “yield” of a property tells you how much of an annual return you are likely to get on your investment. It is calculated by expressing a year’s rental income as a percentage of how much the property is worth.

Total Return – is calculated from property value change as well as the gross rental yield. Typically, houses have a superior value growth performance while units offer superior rent returns. You can’t simply sum the Gross Yield and Annual Return figures together to calculate the Total Return, as the Total Return is based on an annualised Gross Yield, which differs from the Gross Yield shown in this graphic (month-end figure)

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