A new year always brings new predictions. A new decade, even more so!
Coming off the back of a price correction that has destabilised the real estate market and waned confidence, we’re now well and truly into recovery mode and property experts and economists across the country are predicting strong growth for 2020.
Real estate expert John McGrath claims that we’ve entered a new “moderate growth cycle”, which is the strongest he’s seen in 30 years. The three drivers of this growth are the incredibly low interest rates, better access to finance and stable employment. He’s predicting 5-10% growth and a return to normal levels of stock.
Michael Yardney claims that the two major factors that will impact our market are:
- availability of finance
- consumer confidence
He claims that the value of well located capital city properties will increase in value by 6 -7% with A grade homes and investment grade properties in our 3 big capital cities growing significantly faster than this.
Researchers, CoreLogic put the facts behind the predictions and they seen Australia’s housing value rebound continue into 2020 with their national home value index up by 0.9% over the first month of the year. According to their research, this now takes the annual growth rate to 4.1%; the fastest pace of growth for a twelve month period since December 2017.
So, all in all, things are looking positive for the property market for 2020.
Our advice: make the most of low interest rates and a stable economy and invest in property. Figure out your goals and whether you want to buy a new home or an investment property, seek expert advice, talk to us about finance and make it happen.