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A survey by the NSW division of the Australian Property Institute canvassed valuers, financiers, analysts and fund managers and just under half believed that property prices would continue to grow, particularly in Sydney and Melbourne for another six months.
Some respondents were even more optimistic, believing that prices would continue to grow for a further 12 months.
However, while only 16 per cent of people expect to see prices fall in the coming year, and 41 per cent expect prices to rise, 68 per cent of people believe the national housing market is “vulnerable to a significant correction in values”.
API NSW president George Vallas said the survey was conducted in September and October, before banks started making the move to lift interest rates independently of the RBA, so there may have been different responses if the survey was conducted now.
“(so) We can’t be sure if this would have changed the views of participants expressed in their survey responses,” Mr Vallas said.
The survey revealed that respondents believed that low interest rates were a significant to very significant driver of Sydney residential property demand and prices. Many also thought prices were being driven up by foreign investment.
Overall there are many factors that will influence the property market over the coming year, and no one knows for sure what the property market will do, however for the moment it looks like property prices will continue to go up, albeit at a much steadier rate than we have been seeing in recent years.
If you’re interested in having a chat about the current selling market in the Bacchus Marsh region then don’t hesitate to get in touch with one of the team at Arbee Real Estate.