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The dos and don’ts of buying a house with most Australians now expecting house prices to rise

Most Australians are expecting property prices to increase as interest rates hit a record low, a new survey has found.

A Westpac-Melbourne Institute barometer of public attitudes taken this month found 57.8 per cent of people are expecting house prices to rise, compared with just 30.9 per cent two years ago.

As of January 2021, 12.9 per cent of Australians are expecting house prices to climb by more than ten per cent – the highest since the start of the pandemic.

A Westpac-Melbourne Institute barometer of public attitudes taken this month found 57.8 per cent of people are expecting house prices to rise, compared just 30.9 per cent two years ago. Pictured is a Brisbane auction in 2020. Pictured is a file image of an auction

A Westpac-Melbourne Institute barometer of public attitudes taken this month found 57.8 per cent of people are expecting house prices to rise, compared just 30.9 per cent two years ago. Pictured is a Brisbane auction in 2020. Pictured is a file image of an auction

A Westpac-Melbourne Institute barometer of public attitudes taken this month found 57.8 per cent of people are expecting house prices to rise, compared just 30.9 per cent two years ago. Pictured is a Brisbane auction in 2020. Pictured is a file image of an auction

Another 44.9 per cent are expecting house price rises of less than ten per cent, the House Price Expectations survey of 1,200 people taken from January 11 to 16 found.

With interest rates now at a record-low of 0.1 per cent, the Reserve Bank of Australia is expecting median house prices to rise by 30 per cent within the next three years, noting much of the growth is coming from owner-occupiers.

Last year, house prices surged to record highs in 39 of Australia’s 88 sub-markets, CoreLogic data showed.

Regional areas in particular are popular with house buyers as Sydney and Melbourne suffered falls in house and unit prices for much of 2020.

Lei Feng, the founder of property development advisory business PREER, is urging Australians to be wary of seeing real estate as a way to get rich quick.

‘Development is nothing more than a packaging process that involves turning oranges into orange juice. But that process doesn’t warrant you a profit,’ he said.

In January 2021, 12.9 per cent of Australians are expecting house prices to climb by more than ten per cent, the highest since the start of the pandemic. Pictured is a view of houses in Wamberal on the New South Wales Central Coast

In January 2021, 12.9 per cent of Australians are expecting house prices to climb by more than ten per cent, the highest since the start of the pandemic. Pictured is a view of houses in Wamberal on the New South Wales Central Coast

In January 2021, 12.9 per cent of Australians are expecting house prices to climb by more than ten per cent, the highest since the start of the pandemic. Pictured is a view of houses in Wamberal on the New South Wales Central Coast

Real estate data CoreLogic’s head of research Eliza Owen said houses in desirable regional areas near a major capital city offered better long-term prospects.

‘The rise of cities within a commutable distance to the capital cities have enabled a regional lifestyle with the benefit of maintaining access to the employment opportunity and amenity of the capitals,’ she said.

‘This combination has attracted a greater price premium over time.’ 

In a sign of a recovering property market, combined capital city auction clearance rates in the December quarter stood at 69.4 per cent.

That level is higher than the March quarter figure of 62.5 per cent – which covered the period before state border closures and the declaration of the Covid pandemic. 

Sydney had an even higher auction clearance rate of 71.5 per cent, with Canberra doing even better on 80.7 per cent as Melbourne recorded a slightly-below average 68.5 per cent as it emerged from a three-month lockdown. 

Nationally, auction volumes increased by 44 per cent over the same period.

Another 44.9 per cent are expecting house price rises of less than ten per cent, the House Price Expectations survey of 1,200 people taken from January 11 to 16 found

Another 44.9 per cent are expecting house price rises of less than ten per cent, the House Price Expectations survey of 1,200 people taken from January 11 to 16 found

Another 44.9 per cent are expecting house price rises of less than ten per cent, the House Price Expectations survey of 1,200 people taken from January 11 to 16 found

Source: Daily Mail Australia | World News

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