While the housing market downturn could dampen the spirits of would-be buyers and investors, it appears like things are already looking up this spring, promising a recovery over the next few months.
Spring is believed to be the busiest part of the year for the housing market and MindShift.money's Andrew Woodward believes the confidence in the market has started to come back after a series of developments — from the back-to-back rate cut, easing of lending rules, to the improvement in the auction market.
"Confidence is on the rise, so I expect we will see a traditional spring of more activity and a rise in property prices, which will be welcome news for owners and investors," he said in a think piece in News.com.au.
Also read: More Sales, Faster Selling Times As Land Prices Fall
In his modest estimates, dwelling prices could grow by around 3% to 5% over the next 12 months.
"That’s not a bad thing either, particularly given the doomsayers who were suggesting double-digit falls not that long ago. A more sustainable growth in single digits will be far more acceptable to all, like the banks and the Reserve Bank, which helps owners and investor confidence, which helps the economy, which helps everyone," he said.
The possibilities of further rate cuts by the Reserve Bank of Australia could further fuel the demand for dwellings, particularly those in high-growth areas.
Woodward identified several locations across state capitals that are likely to record significant gains over the next year.
In Sydney, he said suburbs in the inner east, lower north shore, inner west, and northern beaches are likely to witness robust rebound in prices. Meanwhile, homebuyers in Melbourne should consider suburbs in the eastern middle ring.
Over in Brisbane, suburbs near the city are likely to sell well, especially apartments.
While Peth will continue to struggle, some Adelaide suburbs are forecast to perform well this spring.
"With so much to digest in the property market, it’s exciting times after a miserable winter," he said.
