Research from BIS Shrapnel has found that house prices will rise by nearly 20 per cent in the next three years.
The rise would add more than $100,000 to the average house price.
The research, conducted on behalf of QBE Lenders’ Mortgage Insurance, found that the currently low interest rates have helped to alleviate the mortgage pressure on households while bringing housing affordability back to its most attractive level for almost a decade.
QBE LMI chief executive officer Ian Graham said prices at the top end of the market have fallen more than the medians, giving home owners the opportunity to trade up to their next dwelling after selling their current house into the buoyant first home buyer market. The strong rental environment and stabilisation of house prices are favourable factors for property investors to also come back into the market.
“Low interest rates, solid growth in rents and housing shortages will create favourable conditions for a strong recovery in residential property prices in the second half of 2010, through to 2012,” he said.
”Double digit house price growth is forecast across all capital cities from June 2009 to June 2012, particularly in those markets with positive affordability and a continuing undersupply of housing.”
”Price growth in Brisbane is forecast at 15 per cent as moderate economic conditions offset the affordability advantage. Perth is expected to enjoy 12 per cent growth, influenced by a decline in investment in the resource sector after the record levels seen in recent years.”