2015 was a year of robust growth for the Australian housing market. Despite news of a fall in the home prices in Sydney this week, the head of research at CoreLogic RP Data, Tim Lawless, predicts the Sydney real estate market will not be experiencing significant price falls.
Mr. Lawless explained his outlook by saying, “I think there’s still that underlying factor of strong demand driven by low interest rates, and not really the supply issues that Melbourne has seen, I think we’ll continue to see Sydney at least remain fairly neutral in its growth.”
Last year, the national average capital city house price was seen to rise 7.8 %. However, in December 2015, growth was stagnant. Sydney housing prices grew by 11.5 % but it’s worth mentioning that city prices declined by 2.3 % in the third quarter of 2015.
The prices of homes in Melbourne had an annual growth rate of 11.2 % last year but faced a 1.9 % dip in the third quarter. In other areas, Brisbane boasted one of the strongest third quarter rates and had an annual home price growth of 4.1 %, similar to Canberra’s.