 Australian house prices set to rise?
House prices rising by as much as 22 per cent... that's the forecast from some economists. As low interest rates and government grants stimulate the housing economy, prices are set to rise, particularly at the lower-priced end of the market.
Among the state capitals, Sydney, Melbourne and Adelaide will show the strongest price growth over the next three years, at 19 per cent. BIS Shrapnel also forecasts there will be 180,000 first-home buyers in 2009.
”The conditions are ripe for a sustained recovery in residential property prices,” according to BIS Shrapnel's Residential Property Prospects, 2009 to 2012, report.
The report highlights that most markets are enjoying historically low interest rates, solid growth in rentals and a shortage of housing.
First home buyers have led the market and with low interest rates and an increase to the first home buyer grant there is more demand to buy a first home.
First home buyer demand has surged following the government's decision to boost the first home owner grant and record low interest rates.
While the first home buyer market rush may ease as the boost scheme winds down by the end of 2009, home owners looking to upgrade, and investors are still expected to be in the market.
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