What is predicted for your local market?
In their recent Residential Property Prospects 2013 to 2016 report, property analyst and economic forecaster BIS Shrapnel anticipate the New South Wales residential market will continue to improve over the next three years, joined by Queensland from 2013/14.
The emerging strength in Western Australia and the Northern Territory should continue in the short term, according to BIS, but residential activity is expected to slow with state economic prospects weakening as the resource boom winds down.
Conditions in the remaining states and territories are forecast to stay dampened by underperforming economies and an excess supply.
The general improvement in residential markets since the latter half of 2012 is attributed to the low interest rate environment. Since October 2011, the official cash rate has fallen by 200 basis points, translating to a 160 basis point fall in variable rates.
Visit the realestateview.com.au home loan centre for more information and a money health check.
Outlook for price growth by region
-Median house price $670,000 in June 2013 (4% increase 2012/13).
-Sydney’s residential market is gaining momentum after being weak for the best part of the last decade.
-Total price growth over three years to June 2016 forecast at 19% (5.9% per annum).
-Median house price $545,000 at June 2013 (4% rise for the year).
-Median house price growth in Melbourne is forecast to a minimal 5% over 2013-2016.
-After accounting for inflation, prices are actually forecast to fall by 4% in real terms.
-Median house price $440,000 in June 2013 (2% up for the year – its first annual increase since 2009/10).
-Price growth expected in 2013/14, which will accelerate and remain solid in 2015/16 thanks to first home buyer and investor activity.
-Forecast 17% total rise in median house price 2013-2016 (average 5.2% per annum).
-Median house price $520,000 at June 2013 (rise of 7% rise in the year).
-Price growth is forecast to begin to tail away through 2015-2016 as resource projects conclude, migration and population growth slows and sentiment dampens. -House prices forecast to rise by 15% from 2013-2016.
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