More predictions, I think we already have an idea, but will post anyway as got this via email today:
There are only a few times in the property cycle where the conditions are ripe for greater activity. Now is one of those times. Property prices change due to a host of factors, but consumer and business confidence are two critical factors that help determine the direction of prices. And confidence has been on the increase.
While we have seen strong increases in the Sydney market, I believe there is still plenty of petrol left in the tank for the road ahead. I am not expecting double digit increases but a more sustainable growth rate of around 7% over 2014. The other bright spot on the radar is Brisbane which is expected to perform strongly this year. This will be driven by strong investor demand and many upgraders seeking a better home. I expect to see a resurgence of new listings in late January/ early Feb as those vendors sitting on the sidelines see the momentum that has built up in the market and decide to take advantage of the good conditions.
Lower interest rates have really been a strong driver of the property market and we have seen significant increases in borrowing for both investor and owner occupiers. I expect rates will remain fairly subdued in 2014 with a possible slight increase toward the end of the year. Some fixed rates are still around the 5% mark making it a very attractive rate.
The property market has shown strong recovery during the past year (2013) and each capital city has seen some level of growth. Across the combined capital cities, home values increased by about 10% per cent over the 2013 calendar year. According to RP Data, this was the fastest annual rate of value growth since August 2010, and the largest calendar year increase in values since 2009 when home values were up by 13.7%.
The capital cities driving growth were Sydney (14.5%), Perth (9.9%) and Melbourne (8.5%). Brisbane (5.1%) was the only other capital city to achieve growth in excess of 5% with each of the remaining capital cities recording annual growth of 3.5% of less.
There are only a few times in the property cycle where the conditions are ripe for greater activity. Now is one of those times. Property prices change due to a host of factors, but consumer and business confidence are two critical factors that help determine the direction of prices. And confidence has been on the increase.
While we have seen strong increases in the Sydney market, I believe there is still plenty of petrol left in the tank for the road ahead. I am not expecting double digit increases but a more sustainable growth rate of around 7% over 2014. The other bright spot on the radar is Brisbane which is expected to perform strongly this year. This will be driven by strong investor demand and many upgraders seeking a better home. I expect to see a resurgence of new listings in late January/ early Feb as those vendors sitting on the sidelines see the momentum that has built up in the market and decide to take advantage of the good conditions.
Lower interest rates have really been a strong driver of the property market and we have seen significant increases in borrowing for both investor and owner occupiers. I expect rates will remain fairly subdued in 2014 with a possible slight increase toward the end of the year. Some fixed rates are still around the 5% mark making it a very attractive rate.
The property market has shown strong recovery during the past year (2013) and each capital city has seen some level of growth. Across the combined capital cities, home values increased by about 10% per cent over the 2013 calendar year. According to RP Data, this was the fastest annual rate of value growth since August 2010, and the largest calendar year increase in values since 2009 when home values were up by 13.7%.
The capital cities driving growth were Sydney (14.5%), Perth (9.9%) and Melbourne (8.5%). Brisbane (5.1%) was the only other capital city to achieve growth in excess of 5% with each of the remaining capital cities recording annual growth of 3.5% of less.
