According to an article on www.rebonline.com.au, property prices have been tipped to rise in most Australian capital cities this year, as demand for properties continues to exceed supply.
For those who are trying to break into the real estate market this probably doesn’t come as good news, particularly as many first homebuyers are already finding it tough to save enough to be able to afford their first home.
Buyers do have the advantage of low interest rates at present, but this comes as a double-edged sword as while it costs less to borrow, low interest rates also bring more people into the real estate market which in turn makes the market more competitive and lifts property prices.
It doesn’t look like market competition will improve any time soon unless interest rates rise (which is looking increasingly unlikely for 2015) or unemployment rises significantly.
However there is a chance that the market will soften somewhat this year compared to last year, particularly if more sellers decide to come onto the market while there is a lot of opportunity to cash in on the high property demand.
For those who are interested in selling, 2015 could prove to be a great time to put your property on the market, so come and have a chat to one of the team at Professionals Arbee Real Estate if you’re interested in a property appraisal.
For buyers, if you’re finding that property prices are too high for your budget then it is worth looking at properties in suburbs that are further away from the main cities or properties that require a bit of TLC.