Median Housing Price Predictions for 2014-2016 Show a Healthy Market
Announcement posted by Smartline Rockingham 03 Feb 2014
Mortgage brokers from Rockingham reveal why procrastination could cause prospective home buyers thousands of dollars.
Rockingham, WA, 3 February 2014 - Recently, the Australian Housing Outlook report was released by BIS Shrapnel. The report was prepared at the request of QBE Lenders Mortgage Insurance, the second most prolific insurers of mortgages in Australia. The report has developed a sterling reputation over the last few years for two reasons.
First, QBE LMI make their money by assessing risk. Their livelihood depends on reports such as the Australian Housing Outlook report being accurate. Second, the report has been very accurate the last few years; its predictions have been near-perfect. Consequently, this report now carries a lot of weight in the finance and real estate industries.
What the Report Says
According to the Australian Housing Outlook report, the housing market in Perth is alive and well. Perth is one of four capital cities, the others being Sydney, Darwin and Brisbane, to have the largest projected growth between now and June 2016. Sydney has the largest projected growth at 18.0%; Perth comes in second at 16.7%; Brisbane is third at 16.4%; and Darwin fourth at 7.8%.
In other words, during the next three years ending in June, housing prices in Perth will rise from their level of $515,000 in June 2013 to a level of $600,000 in June 2016. By June 2014, prices are predicted to rise to $555,000. It should be noted that they have rose exactly half of the predicted number to their current level of $535,000 between July and December 2013.
By June 2015, prices are projected to rise to $585,000, topping out at $600,000 by June 2016. This pattern is one of quick recovery in the next year, followed by prices that are still rising but not quite as fast over the next two years.
What the Report Means to Prospective Home Buyers
According to Justin Smith, The Mortgage Gallery Rockingham’s Principal, those who are considering buying a home in the next few years should take advantage of the current market if possible. According to Mr Smith, “We have been saying the same thing for the last year: buy now before prices rise. So far, prices have risen but interest rate levels have been falling, sparing buyers from the full effects of the increase in housing prices. However, the interest rates won’t stay low forever.”
Mr Smith continued, “Interest rates were lowered to help stimulate the housing market. The lowering of rates didn’t work in November 2011, when the cycle started, due to affordability issues but those issues seem to have been addressed by even lower interest rates and an improving economy. Now, the housing market is becoming healthier every day. It may not happen right now but the day is approaching when interest cuts are no longer necessary.”
Mr Smith added further: “When interest rates level out or start to rise, home buyers will pay the consequences of every housing price rise in higher mortgage repayments. Since this can mean a difference of thousands of dollars over the full term of a 30-year loan, we recommend buying as soon as possible.”
Mr Smith concluded, “Every month of procrastination costs a home buyer more money. If you are going to buy, buy now.”
The Mortgage Gallery Rockingham brokers home loans in the following areas: Baldivis, Kwinana and Rockingham. They specialise in finding the right loans for their buyers’ individual situations. To learn more, check out their website: http://www.themortgagegalleryrockingham.com.au/ or give them a call on (08) 9527 1800.
First, QBE LMI make their money by assessing risk. Their livelihood depends on reports such as the Australian Housing Outlook report being accurate. Second, the report has been very accurate the last few years; its predictions have been near-perfect. Consequently, this report now carries a lot of weight in the finance and real estate industries.
What the Report Says
According to the Australian Housing Outlook report, the housing market in Perth is alive and well. Perth is one of four capital cities, the others being Sydney, Darwin and Brisbane, to have the largest projected growth between now and June 2016. Sydney has the largest projected growth at 18.0%; Perth comes in second at 16.7%; Brisbane is third at 16.4%; and Darwin fourth at 7.8%.
In other words, during the next three years ending in June, housing prices in Perth will rise from their level of $515,000 in June 2013 to a level of $600,000 in June 2016. By June 2014, prices are predicted to rise to $555,000. It should be noted that they have rose exactly half of the predicted number to their current level of $535,000 between July and December 2013.
By June 2015, prices are projected to rise to $585,000, topping out at $600,000 by June 2016. This pattern is one of quick recovery in the next year, followed by prices that are still rising but not quite as fast over the next two years.
What the Report Means to Prospective Home Buyers
According to Justin Smith, The Mortgage Gallery Rockingham’s Principal, those who are considering buying a home in the next few years should take advantage of the current market if possible. According to Mr Smith, “We have been saying the same thing for the last year: buy now before prices rise. So far, prices have risen but interest rate levels have been falling, sparing buyers from the full effects of the increase in housing prices. However, the interest rates won’t stay low forever.”
Mr Smith continued, “Interest rates were lowered to help stimulate the housing market. The lowering of rates didn’t work in November 2011, when the cycle started, due to affordability issues but those issues seem to have been addressed by even lower interest rates and an improving economy. Now, the housing market is becoming healthier every day. It may not happen right now but the day is approaching when interest cuts are no longer necessary.”
Mr Smith added further: “When interest rates level out or start to rise, home buyers will pay the consequences of every housing price rise in higher mortgage repayments. Since this can mean a difference of thousands of dollars over the full term of a 30-year loan, we recommend buying as soon as possible.”
Mr Smith concluded, “Every month of procrastination costs a home buyer more money. If you are going to buy, buy now.”
The Mortgage Gallery Rockingham brokers home loans in the following areas: Baldivis, Kwinana and Rockingham. They specialise in finding the right loans for their buyers’ individual situations. To learn more, check out their website: http://www.themortgagegalleryrockingham.com.au/ or give them a call on (08) 9527 1800.