There are continuing signs that the Australian property markets may have hit the bottom and are now moving from strength to strength.
This week ANZ Bank decided to scrap its pessimistic forecast and now expects modest property price growth this year and a strong rebound next year
Also, over the last week the “time to buy a dwelling” indicator from NAB’s consumer sentiment survey rose to the highest level in 7 years.
There are now a range of indicators suggesting Australia may have passed the bottom of this property cycle and property values will gently increase.
- – Consumer confidence has been consistently improving as has business confidence
- – Auction clearance rates have been consistently strong around Australia
- – More buyers and sellers are in the market and transaction numbers have increased consistently.
- – At the same time the banks are keen to lend
- – Bank loan deferrals have been consistently falling – there is little likelihood of an avalanche of forced mortgagee sales
- – The recent rate cut and the “guarantee” of rates remaining low for at least 3 years, will give home buyers and investors confidence
- – Moving forward further jobs creation, consumer confidence and business confidence (leading to spending and employment) will underpin our housing markets.
ANZ Bank new forecasts predict property price gains of around 9% across Australia’s capital cities next year.
Perth looks set to be one of the strongest performers with gains of 12 per cent expected, followed by Brisbane (+9.5 per cent) and Hobart (+9.4 per cent). Sydney prices are expected to rise close to the national average (+8.8 per cent), while Melbourne prices are forecast to lag a little (+7.8 per cent).