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After a year of ups and downs, 2020 will bring more positive news to the real estate market, The Agency predicts.
“Our prediction for next year sees this buoyed property market activity continuing, with available stock levels rising next year as home owner confidence grows in response to the current buyer depth and competition in the market,” The Agency CEO Matt Lahood said.
Several economic factors have resulted in a mini-boom in Melbourne and Sydney, with property prices soaring 6.4 per cent in the Victorian capital and up by 6.2 per cent in the Harbour City.
The boom as been supported by lower interest rates, and there is talk of two more interest rate cuts next year, taking rates down to 0.25 of a percentage point, which will keep the market buoyant, Mr Lahood said.
“With home buyers armed with access to affordable funds and fewer homes on the market, auction clearance rates have hit new highs. Sydney clearance rates have been consistently over 80 per cent and Melbourne over 70 per cent, which is extraordinary considering last year’s clearance rates regularly sat around 50 per cent.”
Although there have been reports predicting a significant house price growth in 2020, Mr Lahood envisions a steady market with “modest price growth”.
“While Perth and Darwin have not experienced the same ‘mini-boom’ in terms of price growth over the last quarter, they are proving to be attractive markets in terms of rental yields for investors.
“In particular, we are seeing an increase in investment in the Perth market from the east coast of Australia, with investors taking advantage of the attractive property prices.”
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