What will the Housing Market be like in 2016
We can’t guarantee the crystal ball we gaze into is 100% accurate. But there are some things we can predict about the housing market in 2016. We can predict how you can best capitalise on your investments to expand your portfolio over the next 12 months. Or, find that perfect property to call home. Keep reading for our housing market forecast for 2016.
- The biggest prediction for the 2016 housing market is a dramatic fall in house prices. If you’re looking to purchase a home this year, start getting your ducks in a row now. Prices will decrease by at least 7.5%, some experts predict.
- Doomsdayers predict that the housing market will no longer be the safe investment haven it has always presented itself as. The stockmarket is now a less risky option and we’re fast heading for a recession.
- People aren’t coming to Australia for employment as they were several years ago. The population has steadied and supply is now overtaking demand, driving prices lower than they have been for some time. The fall is meant to begin around March with recovery not occurring until the latter half of 2017.
What Does This Mean for Buyers?
Quite simply, there’s no better time to buy, with prices falling and the predicted rate cut by the Reserve Bank (it’s forecast that rates will be on hold for the entire 2016 period). The 2016 property market is going to be the happy place for many who have previously only dreamed of owning their own home. First home buyers will similarly rejoice as they will be able to tentatively poke their toes into the housing hot water. That couldn’t be better news for workers, with wage growth not improving much over the same time frame.
The take home message, though, is not to panic as this particular trend has been seen many times over in the past – housing prices rise and fall, and along the way investors and buyers reap the benefits. It would appear that for this year at least, home buyers are set to be better off. Major capitals such as Melbourne and Sydney will see large falls in the 2016 housing market, however experts say that if you plan on buying your home and staying for a long time, then timing isn’t critical. The fall in prices might better benefit the investor looking for a short-term gain.
Looking at taking advantage of the house price decrease by making a purchase this year? Speak to our friendly staff here at Aspect Estate Agents. We’ll help you find a property to suit your needs and budget.