Cast your minds back to the start of 2014. There we were, twiddling our thumbs, wondering if the real estate market would ever recover from the GFC and return to those golden years of growth in the early 2000s. None of us could have anticipated the growth we experienced in our capital cities in 2014. But where does this leave us for the rest of 2015 and into 2016?
Let’s begin with Sydney. After a stellar year in 2014 that saw the real estate market rise by 13.9%, Sydney is expected to rise again by another 8% this year.
It’s forecasted that Hobart and Canberra are set for more growth over the next year, with Hobart expected to rise from 2.1% to 4%, and Canberra to scale from 0.9% to 2%.
After seeing great rises in 2014, Melbourne and Brisbane are expected to plateau over the next year at 4% and 6% respectively.
The real surprise
The surprise package that has everyone excited is the upsurge of Darwin. After experiencing a loss in growth in 2015, Darwin went from -2.5% to being expected to grow by as much as 2%. After a really good decade of growth, Darwin has dropped off the top of the list in the past 2 years, and against what some experts had predicted, has re-established itself as one of Australia’s best places to invest in housing.
Real estate market auction clearance rates
Last month, we witnessed an ‘auction frenzy’, as one weekend saw an unbelievable 79% of auctioned properties sold nationally. That is the second highest level in data going back almost seven years. Buyers are seeing no end to these price rises, with the median price for a Sydney house now in excess of $900,000, with Melbourne approaching a median house price of $700,000.
What does all this mean for you?
2014 capped off a year that saw capital city homeowners add an average of 7.9% in value to their properties, and experts are again forecasting more growth.
Prices in our capital cities have more or less doubled in the last 10-12 years, and in particular parts of those metropolitan areas it has gone through the roof. What we all need to figure out for ourselves is not ‘when should I buy or sell’, but rather ‘where’.
Some say that, if you’ve considered selling, there’s never been a better time. And with the national real estate market set for more growth in the up-coming years, cities such as Hobart, Canberra and Darwin have emerged with great opportunities for buyers and sellers alike.