Property portal predicts less ‘pizzazz’ in 2015

Property portal predicts less ‘pizzazz’ in 2015

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A property listings website has forecast that next year's market will not pack nearly the punch the heated 2014 market did.

Homely marketing executive Todd Schulberg said the real estate industry in 2014 has had few dull moments.

“The year has ebbed and flowed, but all in all, it's been overwhelmingly positive for sellers and proven to be another challenge for buyers to crack in to the market, due to strong investor interest and notoriously low interest rates – some of the lowest on record,” he said.

“Clearance rates have remained incredibly strong throughout the year as property has been snapped up by hungry buyers.”

Homely national sales director Rocky Bartolotto said the 2014 market will end a remarkable year of real estate nationally.

“However, there is no doubt the market has cooled slightly due to the surge in stock in October and particularly November; as well as the inevitable impact of another strong year of price growth giving buyers pause for thought,” he said.

“2015 looks from the outset like it may not have the pizzazz that 2014 provided, especially early on. There looks to be more of a subdued forecast for the year ahead, for a few reasons.

“Interest rates are most likely going to rise at some stage in the next 12 months, unemployment may continue to grow and people will start to become more cautious,” he added.

Mr Schulberg said while the Australian dollar looks to be settled for now, "It may head downwards throughout the year, making foreign investment into Australia more appealing, locking out local investment and making people more conservative,” he said.

“Don't expect 2015 to break any records. It will be near-on impossible to match the heat in the market that 2014 showed at some stages, with 1,000-plus auctions a week and an infinite pool of buyers to match it.” 

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