The outlook for the Australian housing market definitely looks promising
Perth, WA (PRWEB) February 28, 2013
Uncertainty is everywhere. At the height of the global economic crisis companies across the globe were quickly downsizing, employees were getting laid off, homes were being foreclosed on and many lost their entire life savings in the markets.
The worst of the global economic crisis seems to be over and signs indicate that we are in a midst of a slow recovery. However, consumers still remain both cautious and skeptical particularly with regards to the housing market.
The Australian Property Monitors (APM) released a report which shows that the national media house price over the last quarter in 2012 rose 1.9 percent and 2.1 percent for the year. These numbers are modest but are still positive signs that the market is improving.
"With a rising share market and an improving international outlook, the general economic landscape and prospects remain optimistic which is unequivocal good news for Australia's recovering housing markets" concludes Dr. Andrew Wilson, senior economist for the APM.
While it’s impossible to predict how the markets will perform, here are five insights based on market analysis that shed more light on the housing marketing in Australia.
1. Expect Perth and Sydney to bounce back
The Perth housing market is expected to see strong growth for 2013. One analyst from PRDnationwide predicts growth of 5% for the coming year with low interest rates and mining investments largely responsible for this growth. Sydney is also expected to see moderate growth for 2013.
2. Expect luxury markets to recover
The economic downturn hit the higher end of the market hardest. These are the areas which are anticipated to experience growth first, particularly in the bigger cities. In particular, those areas that went down the most might be particularly attractive to potential property investors.
3. More first time home buyers will opt to buy
With interest rates at an all time low and the market slowly on the rebound, first time buyers will increasingly choose to buy instead of rent for 2013. However, areas with higher rates of unemployment could drastically affect how the local economy performs in terms of the housing market.
4. Expect interest rates to increase
Interest rates have already been cut to their lowest on record to help boost the economy. The effects are still being measured but some analysts say that it’s having a positive effect on the market. One thing that’s for sure is that as the market recovers, the interest rate will also reflect that growth.
5. Expect NSW towns to show strong growth
The capital city is expected to increase for 2013, but those surrounding regional towns such as Orange and Albury may outperform Sydney. The already high costs of living in Sydney and the affordability for NSW towns will be the primary factors that will drive this growth.
The outlook for the Australian housing market definitely looks promising with signs of growth across the country. Even RP Data National Research Director Tim Lawless believes that “We see growth of around 3.5 to 4.5 per cent by the end of the year, tracking along with CPI or wages growth.”
At that point, he also predicts a full recovery in the market. While analysis points to a strong start in 2013, there is only so much that data can tell us.
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