Good news budding buyers, you could find your property journey getting that much easier over the next few years as the housing market continues to soften from its unbelievable highs.
After CoreLogic RP Data reporting close to 11 per cent year-on-year housing median value gains in some cities over the last 12 months, buyers keen to get onto the property ladder will be breathing a sigh of relief as predictions of an easing market continue to mount. It might be time to re-evaluate how much you can borrow and what you might now be able to afford!
The latest of these predictions come from a collaborative project between CoreLogic and Moody’s Analytics. Taking a slightly more long-term view, their new Australian Forecast Home Value Index is set to give homeowners an idea of what kind of real estate value changes to expect over the next 10 years.
Their first expectation? Slower value growth over the next year.
“On the outlook for the housing market nationally, we expect house price appreciation to slow in 2016,” said Alaistair Chan, an economist for Moody’s Analytics.
“Our forecast reflects lower income growth as the Australian economy transitions away from mining-related investment, as well as the strong build-up of housing supply over the past two years.”
Move over mining, it’s time for housing to take centre stage
Industry bodies such as the Property Council are unlikely to be surprised by these conclusions. Using data from the Australian Bureau of Statistics, they concluded that even right now at the start of 2016, residential construction is what is driving the Australian economy.
“Residential construction continues to surge and is delivering economic growth, jobs and investment,” said Property Council Chief of Policy and Housing Glenn Byres.
“The new data re-affirms the crucial role housing construction plays in our economy, particularly during the transitional phase underway.”
First home buyers and downsizers alike should be jumping for joy in anticipation of incomingsavings on their home loans.
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