Recent data has revealed capital cities recorded the strongest capital gains for winter since 2007.
According to an industry analyst, Sydney house prices aren’t finished yet. In fact, the Sydney housing market may experience another 5% rise in prices between now and the end of the year.
Macquarie Capital’s Rod Cornish told the Australian Financial Review
that the Sydney property boom depends on rate decisions.
“Rates now look like being low for longer than we originally thought which may impact on prices,” the AFR quotes Cornish.
Cornish told the AFR that without a rate rise, Sydney would reach the tipping point – where the market would change – after another 15% price rise.
Although, Cornish admitted that policy would be likely to step in before the market reaches any tipping point.
“This degree of price rise would take the median house price to a high level and you could imagine if this was widespread across Australia, there could be an interest rate reaction to slow the housing market prior to that point,” Cornish told the AFR.
If rates were to rise 1%, Cornish says the market change point would be hit after a 7% price rise. If rates were to rise 0.5%, the tipping point would be reached after a 10% house price rise.
With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now
Top Suburbs :
Get help financing your investment
Do you need help finding the right loan for your investment?
When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.
Just fill in a few details below and we'll then arrange for a local expert Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus, our mortgage broking service is at no cost to you.
We value your privacy and treat all your information seriously - you can check out