bricks and mortar

Australians ready to buy property in 2021 after record savings

PHOTO: Australians’ appetite for bricks and mortar has returned amid rising confidence. Photo: Peter Rae

The housing market will take off in 2021 after a long year plagued by the pandemic-induced recession that saw Australians squirrel away $110 billion in savings, according to experts.

While the coronavirus hit Australian shores hard earlier this year, the health crisis and the economic devastation it brought with it have since steadily improved.

The lockdown saw the real estate sector shutdown like many other industries, impeding normal selling and buying and dragging down property prices.

But with the economy out of a recession and auction clearance rates steadily rising, Australians’ strong appetite for bricks and mortar has returned – and some of the $110 billion that households saved during the pandemic is likely to go into the housing market.

Commonwealth Bank Of Australia’s head of Australian economics Gareth Aird said improving consumer sentiment, low interest rates and cashed-up households were fuelling price growth.

“You’ve got a few forces that are all pointing to higher house prices,” he said. “Some of the forward-looking indicators like lending have increased quite quickly in the past four months,” Mr Aird said.

He said property markets around Australia showed no signs of slowing into next year.