In contrast, house prices in Sydney are forecast to weaken further amidst higher interest rates
and deteriorating affordability. PMI predicts median residential property prices to drop 2.1% to $517K this year and further 3% to $495K in 2008. Turnaround in prices is not expected to start until 2009, where median house price will see a 2% growth according to the report.
The outlook for Melbourne is slightly better. PMI expects to see a 3% increase in median house prices to $370K for the year, however, growth will slightly moderate to 2% over the next two years.
Ian Graham, Chief Executive Officer of PMI Australia, says, "The property market in Australia is slowing to a more moderate pace, as we expected. We see this continuing into 2008, when lower interest rates and improving economic conditions could bring a period of stronger price growth."
While the resources boom continues to drive the economies of WA and the NT, greater return on investments are expected in these markets.
Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker