Is The Property Market Moving In Buyer’s Favour?
Anyone who is in the market to buy real estate could find their options have increased, as the latest predictions suggest a slowdown in conditions is taking hold.
The CoreLogic-Moody’s Analytics Australian Forecast Home Value Index indicates that two years of price growth is now starting to come to an end.
What’s in store for 2016
Over the course of 2016, the experts predict that house price appreciation is in decline. This is a result of various factors, ranging from worsening conditions in the national economy and a move away from mining-related investment.
In the medium term at least, the labour market is expected to gather pace and rental growth looks set to gain some momentum. Buyers will need to keep an eye on the latest figures to see whether there are any opportunities to move out of rental properties and into more permanent accommodation.
Melbourne starts to outperform Sydney
There’s also potential for real estate in Melbourne to start outperforming Sydney. The index shows that values are likely to rise 7.2 per cent in the Victorian capital throughout 2016, although in 2017 this could slip back to 1.3 per cent.
In the three months to September, the Australian Bureau of Statistics (ABS) showed exponential growth across the Sydney market. The Residential Property Price Index showed a price increase of 19.9 per cent, whereas the rise in Melbourne registered at just 9.9 per cent.
Opportunities in other areas
There are also some other parts of the country that are currently performing well. Real estate in Hobart is in demand, but the CoreLogic-Moody’s data suggests prices might soon start to rise.
For an insight into the Australian property market and help identifying where to buy your next home, get in touch with the team at Rayner First National.