Predictions for the Australian housing market are all pointing towards ‘positive’ for home buyers and investors.
The latest report from the Housing Industry Association (HIA) suggests that more than 165,000 new homes will be constructed over the next 12-months. This is classified as a record breaker, as over the last 10-years this is only the 2nd time that new home construction has risen to these levels.
Shane Garrett, HIA senior economist believes this will make the housing industry a “good news” story for many months to come. This, in turn, will boost local economies and help to restore market confidence.
New home growth is being driven by stronger market activity in New South Wales, Queensland and Western Australia. But, challenges in the industry are expected to occur in Victoria and Tasmania.
The HIA feels that the Reserve Bank of Australia (RBA) will leave interest rates on hold for the remainder of 2014. This is increasing home buying confidence, with most Australian’s stating that now is a good time to buy property.
In a recent RPData housing market survey of more than 1,000 potential home buyers, more than 76 percent said they would consider buying in the next 6 to 12-months. More than 50 percent of the respondents said they thought home prices would rise over the next year. Only 5 percent of respondents said that they expected home prices would fall further.
Tim Lawless, RPData national research director said Australians will remain positive in relation to the housing market. However, he also noted that consumer confidence was not ‘rock solid’ as some buyers were concerned about the sustainability of home values in terms of growth.
Despite this concern though, home buying numbers are increasing. Transactions are continuing to rise, along with auction clearance rates. Overall market demand remains high said Lawless.
Peter White, CEO of the Finance Brokers Association of Australia (FBAA) said there are signs that the market is looking up. Many areas Australia-wide are showing positive signs. Plus, low interest rates and a stable period is creating an environment of opportunity with many home buyers and investors taking advantage of low interest rates. Those looking to refinance are also thinking of fixing rates, before rates start to move back up.
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