house price forecasts

Forecasts say house prices on the rise

As we reported LATE LAST YEAR, the past few months have seen a substantial rethink from several respected economic commentators including the major Banks on where house prices are headed.

The latest of these comes from the Westpac Melbourne Institute which reported this week that expectations are rising that house prices will continue to climb over the near future. This is based on their monthly Index of House Price Expectations which rose by a further 1.1 percent this month, despite January being a traditionally quiet month for the property market.

This additional rise in price expectations followed a 9.4 per cent increase in the index for December when it reached levels that were double those reached in April last year when the Covid-19 restrictions first began impacting the market.

It was interesting to see that Bill Evans, the Chief Economist at Westpac, feels that there is still room for further increases in market sentiment. He has been quoted this week as saying, “The index is still 4.3 per cent below its level in January last year, pointing to further potential upside for this index.”

Australian homeowners will be interested to see that the latest forecast from Westpac is that property prices will rise by 15 percent by 2023, an average of 7.5 per cent per year. This prediction sits comfortably with the latest data from Corelogic, which reported a further 1 per cent increase in December across the country.

With these forecasts having a growing impact of overall market confidence, along with the current shortage of available properties for sale, it is important that you get experienced, objective advice before making any decisions on when and if to sell your home.

So if you are currently weighing up your next move in the real estate world, it’s an ideal time to give one of the team at Ian Reid Buyer and Vendor Advocates a call on 1300 400 400 for expert guidance. You’ll also find lots of timely tips in our free booklet, “Fatal Real Estate Traps Exposed”.