The real estate in Australia is the strongest and most consistent real estate and property investment markets in the world. Over the years, some “experts” in the media predicted that a housing market Armageddon will happen soon. However, things didn’t turn out the way they predicted it. Instead, the property markets in Australia bottomed out in June 2019 and are now rapidly retracing its steps.
Now the turn in Australia’s housing market is remarkable, and the rebound of prices considerably stronger than many expected. The next question is: “What is up ahead the real estate market?”
What’s ahead?
The market has predicted that housing prices are expected to grow across capital cities in 2020 and 2021. It is expected that more buyers will be back into the market due to lower interest rates, easing lending serviceability buffers, and increased consumer sentiment.
2020 will also unfold a dynamic activity around affordability and population flows. Low deposit rates and equity volatility will drive more interest but funding is likely to remain a constraint on investors. These things are considered as pressures. In turn, it is expected that a gradual shift in population flows will follow through as would-be buyers priced out of the capital cities will seek out more affordable markets.
What will the House Price Forecast Look Like?
According to Metropole, the prices overall property values in the capital cities in Australia are likely to increase by around 5 -7% in 2020. Currently, the number of housing investors are low; this is perhaps due to the borrowing constraints with banks and lending institutions.
But with the booming economy in Australia, the availability of financing will be a game-changer. Also, interest rates are dwindling and banks are starting to loosen up a bit and lend a bit more to investors.
So, if you would like to invest in real estate, 2020 is a great year to start. If you’re looking for real estate in Cairns, contact Steve Cordenos and he’ll catch you up with a great deal.