The state of Australia’s housing market: 2017 predictions
If you’re looking at buying a house in 2017, it could pay to start watching the market now and getting a feel for what you can expect.
Fortunately, several experts have already weighed in and make their predictions for what might happen over the coming year. Take a look at what they think as it may help you find the best time to buy a house.
Price growth to slow down
After 2016 was filled with higher demand and lower affordability, it has been suggested that this housing ‘boom ‘ in the eastern states will begin to level out.
Last year in fact saw 10 per cent growth (or more in some areas), but many forecasters are expecting growth this year to be closer to the 5 per cent mark, according to a Daily Telegraph article, CommSec chief economist Craig James said they were expecting overall national growth “in the region of three to five per cent”.
Basically, this means that although a low supply and high demand may well continue to push prices higher across the year, it won’t be at quite the rate of the past 12 months. That said, home owners in Sydney and Melbourne may yet see continued growth in property prices.
RBA rates to remain the same
Usually, when the Reserve Bank of Australia (RBA) raises or lowers the official cash rate (OCR), major banks and lenders will similarly do the same with their loans.
According to a realestate.com.au article , the RBA will continue to keep the cash rate stable and perhaps even drop it lower early in 2018 to help boost the economy . If major lenders around Australia follow suit, this could help buyers secure home loans at lower rates, making it a little easier to enter the property market.
Price drops in mining regions
While housing in Sydney and Melbourne may continue to see rise in prices increase, mining centres such as Perth and Darwin are predicted to see prices fall.
SQM and CoreLogic research predicts a drop of 7 per cent in Perth and 6 per cent in Darwin for house prices during 2017 . For anyone looking to make a purchase in one of these capital cities, 2017 could be a more affordable time to buy a house or apartment.
It’s tough to predict exactly what will happen with Australia’s property market in 2017, but if you think it’s the right time for you to buy a home, talk to the experts at Beyond Bank about finding a mortgage that’s perfect for your needs.