It’s certainly been an interesting year for the Australian property market – property prices reached record highs and interest rates reached record lows – but now that 2015 is coming to end we all want to know whether we’re in for more tumultuous times ahead.
Over the last few months the real estate market seems to have cooled down, with auction clearance rates dropping significantly in Sydney and Melbourne.
There are mixed opinions about where the property market is headed next and a lot of people are holding off from playing their real estate cards.
Macquarie Bank has predicted a 7.5% decline for the first half of 2017, while ANZ has predicted a 3.1% growth for NSW next year.
Sydney has been seeing prices rise significantly over the last few years, but the APRA has helped calm the market down by putting pressure on the banks to lift their rates for investors, and indeed they have gone one step further and lifted their regular rates as well, independently of the RBA. But will higher interest rates result help keep the market in a calmer state?
It’s hard to know for a certainty what the property market will do in 2016, but it will be interesting to see whether the RBA decides to lower the 2.0% cash interest rate in February, which may see activity ramp up again… if the banks pass the cut on that is.
But even if they don’t, the demand to live in Sydney isn’t going to go away. There is only limited supply in the city and homeowners and investors will always be looking for opportunities to buy near the city.
If you’re thinking of investing in the property market and are worried that you’ve missed the boat, then it could be worth looking at your options while the market has slowed down over Christmas. A lot of people are holding off to see what the market does, which provides a great opportunity to get in while there is less competition. You might also be able to pick up a great deal from those in a rush to sell their property before the New Year.
For those who have bought recently, it’s best to sit back and wait out any periods of calm. Selling property in the short-term is always a risky move, but if you have a long-term mindset then you’re likely to see strong growth over time.
If you would like to have a chat about the real estate market in Fairfield, then we’re always happy to have a chat at Professionals Fairfield Real Estate.