The latest Reuters survey of 13 property analysts taken Nov. 6-20 showed that average home prices would rise 5.0 percent nationally next year, almost doubling the predicted rate just three months ago, and then slowing down to 4.5 percent in 2021.
Six out of 10
experts who answered an additional question said that further
interest rate cuts would significantly boost Australia's housing
market activity and prices to the record-low 0.75 percent benchmark
cash rate after three RBA cuts already this year.
HSBC economists are
predicting a 5–9 percent increase in national house prices in 2020.
This is an improvement of 0–4 percent in their previous
assessments. Increased confidence, due largely to relaxed lending
criteria and lower interest rates, resulted from June onwards in an
improving economy.
HSBC's chief
economist for Australia, Paul Bloxham says the main explanation is
buyers ' increased demand. “We expect housing prices to continue to
rise in 2020, underpinned by mortgage rates, which are likely to stay
low for a considerable period,” he says. “However, while we
expect to see housing demand remain strong, we also expect the recent
strong housing price gains in major cities to entice more sellers,
increasing available supply and housing turnover.
“This should temper the recent pace of housing price gains in Sydney and Melbourne from their current very rapid monthly rates.” Other major sources, including Commonwealth Bank and SQM Research, have recently forecast strong price growth across the major cities of the nation in 2020, with Darwin the only exception.
Finance or mortgage brokers provide property investment advice on a range of borrowing options, however choosing the right one is essential because they will do the legwork and guide you through the loan application process.
Learn More Here: Property Prices Trends Upward 2020
