Double-digit growth in the housing market by the end of 2021 is not out of the question, according to Tim McKibbin.
In his weekly update on the NSW residential market, the chief executive officer of the REINSW said that affordable finance and a positive employment outlook will see house prices continue to rise over the course of the year.
“The real estate market’s flying start to the year shows no immediate signs of abating,” he stated.
“The average number of days Sydney properties are spending on the market is dropping and vendor expectations are being heightened.”
Mr McKibbin’s comments come in anticipation of the Reserve Bank’s cash rate remaining unchanged over the month of March.
“Low rates are likely to stay for years to come, even though other signs point to the economy recovering faster than expected, including the encouraging employment figures released recently,” he has forecast.
But even more interesting than the headline growth in house prices, according to the CEO, is how that will go on to affect the interplay of metropolitan and regional markets — and whether New South Wales will continue to see a two-speed market playing out.
At this stage, Mr McKibbin said “key regional markets have shown they are not equipped to satisfy the growing number of people looking to buy and rent homes”.
“So, the question is: Can regional markets respond to the increase in demand?”