Despite four rate hikes in six months, and the possibility of more on the horizon, buyer demand is not showing any signs of waning.
RP Data’s national research director, Tim Lawless, told Real Estate Business that early indicators suggest house prices will continue to rise thanks to increasing buyer demand.
“The RP Data – Rismark Hedonic Home Value Index was up 1.8 per cent in January this year, clearance rates are over 70 per cent, new property listings are being absorbed very quickly and rental markets are showing some improvement after a soft second half of 2009,” Mr Lawless said.
“With population growth and thus demand for housing remaining strong, the new housing sector should see ongoing improvements. Dwelling approvals for detached housing have been trending upwards, albeit from a very low base, which is a positive sign that confidence is returning to the building industry.”
According to Mr Lawless , the housing market is currently enjoying a stellar run which is expected to last for some time yet.