The latest Reuters survey of 13 property analysts taken Nov. 6-20 showed that average home prices would rise 5.0 percent nationally next year, almost doubling the predicted rate just three months ago, and then slowing down to 4.5 percent in 2021.
Six out of 10 experts who answered an additional question said that further interest rate cuts would significantly boost Australia’s housing market activity and prices to the record-low 0.75 percent benchmark cash rate after three RBA cuts already this year.
HSBC economists are predicting a 5–9 percent increase in national house prices in 2020. This is an improvement of 0–4 percent in their previous assessments. Increased confidence, due largely to relaxed lending criteria and lower interest rates, resulted from June onwards in an improving economy.
HSBC’s chief economist for Australia, Paul Bloxham says the main explanation is buyers ‘ increased demand. “We expect housing prices to continue to rise in 2020, underpinned by mortgage rates, which are likely to stay low for a considerable period,” he says. “However, while we expect to see housing demand remain strong, we also expect the recent strong housing price gains in major cities to entice more sellers, increasing available supply and housing turnover.
“This should temper the recent pace of housing price gains in Sydney and Melbourne from their current very rapid monthly rates.” Other major sources, including Commonwealth Bank and SQM Research, have recently forecast strong price growth across the major cities of the nation in 2020, with Darwin the only exception.
Finance or mortgage brokers provide property investment advice on a range of borrowing options, however choosing the right one is essential because they will do the legwork and guide you through the loan application process.