Australia house prices in 201605 February 2016 by News Desk
House prices in Australia are forecast to rise by just 1% in 2016 while the price of apartments is set to fall by 1.2%.
And, in further good news, credit lending for mortgages and home loans has almost doubled in recent years the result of historic low interest rates.
“These latest figures are great news for anyone seeking to live and work in Australia,” says Darrell Todd, CEO of thinkingaustralia.
“Housing costs are set to slow, and fall, further during 2016 and we are starting to see a major shift away from a sellers’ market – driven by recent shortage of housing – to a buyers’ market caused by over-supply of properties in cities such as Sydney.”
The cost of Units in all state capital cities is forecast to remain flat and to fall over the coming 12 months.
Only Queensland is forecast to see significant rising home prices this year, according to National Australia Bank’s latest survey that predicts price growth in the state will continue for the next two years.
Meanwhile, growth in homes loans and mortgages has increased from 4.5% in 2012 to 7.5% in 2015, mirroring the recent housing boom across Australia.
“The housing boom may now be slowing but low interest rates and fierce competition between lenders means there is no shortage loans and credit for home purchase – more good news for anyone thinking of living and working in Australia,” adds Darrell Todd.
Queensland is forecast to see house prices rise by up to 2.7%, followed by Victoria (1%). New South Wales will see prices remain flat, along with South Australia at -0.6%, Northern Territory (0.2%) and Western Australia (0.6%).