17 Nov 2015 By: Greg Hocking 0 Comment
As years draw to their ends we see many people making predictions.
What will happen next year? Who stands to gain (or lose)? Where do you buy? Where is the next boom suburb? I am not going to join the throng.
Instead here are two counter predictions, things that will NOT happen in 2016.
We will not see a housing market collapse next year. We will not see interest rates shoot back to double digits.
I have been in this industry 30 years. Years like 2015 come along once or twice a cycle, this time the result of buyer demand building since the GFC. Yes, the market’s pressure valve finally opened this year with many vendors decided it was time to list their properties confident eager buyers with historically low interest rate home loans would bring desirable sale outcomes. Those savvy vendors were right.
Melbourne’s house values rose by 14.2% year on year, according to CoreLogic RP Data. Clearance rates for weekly auctions have stayed between about 70% and 80% since February.
But don’t think property markets read calendars. The market conditions that created such prime selling conditions this year will almost certainly continue into next year. (Sounded a bit like a prediction, didn’t it?)
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