According to the results of the Mortgage Choice’s 2016 Money Survey, 32.5% of Australians are predicting house prices to grow this year, while another 25.3% expect prices to remain stable.
On the other side of the coin, 25.1% of respondents believe house prices will fall in 2016, while the remaining 17.1% said they were unsure where prices are headed.
Across the country, West Australians were the least optimistic about the future of property prices in their state, with 55.4% of respondents stating that they expect dwelling values to fall over the coming 12 months.
At the other end of the spectrum, Queenslanders were the most optimistic about the future of property prices in their own state, with 46.8% stating that prices would continue to increase.
The majority of Victorians were also optimistic about prices in their state, with 43.0% indicating that prices would continue to rise over the coming year, though some are predicting some pain for Melbourne in the near future.
Mortgage Choice chief executive John Flavell said the survey results further highlight the diferent conditions across Australia’s markets.
“At the moment, the Australian property market is telling two different stories. On the east coast of the country, property prices continue to rise – albeit at a slower pace than previous years. According to data from CoreLogic, dwelling values have climbed across all of the eastern capital cities over the last 12 months,” Flavell said.
“Australia’s property market isn’t a single market. It is made up of many different markets, some of which are thriving and some are not. The reality is the property market is cyclical in nature. In other words, property prices will rise and fall over time. So, while dwelling values have fallen in Perth over the last 12 months, that doesn’t mean to see we won’t see an improvement in this market over the short to medium term,” he said.
While opinions may vary on where the market is currently headed, Flavell said he still expects market activity to remain strong during the year.
“One thing is clear: the Australian property market as a whole remains relatively robust,” Mr Flavell said,” he said.
“Home loan demand continues to outpace market expectations, with recent data from the Australian Bureau of Statistics showing more than $32.8 billion in home loans were approved over the month of February. This highlights the ongoing strength and resilience of the Australian property market.”
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