Dr Andrew Wilson Chief Economist for Domain writes:
What’s around the corner in 2017 for your city?
With the festive season fast approaching, making a move might find its way onto your list of New Year’s resolutions. 2017 could be your year to secure your dream home or finally make that big sale.
Whether you’re a buyer, investor or seller, 2017 provides opportunity for you.
The forecast for capital city housing markets remains mixed for 2017, with no surprise that Sydney and Melbourne are likely to continue to lead. It is likely that other capitals will remain steady, with price growth generally constrained by low income economies. Lower interest rates in 2017 are likely to continue to bolster housing markets, with an increasingly under-performing national economy almost certain to require further stimulus from the Reserve Bank. House price growth, although remaining positive in most capitals through 2017, will likely track in a narrow range of up to 5 percent annually for the top performers. The Darwin and Perth markets are set to bottom out in 2017, following a lengthy period of weak activity with prices at three year lows. A return to sustained growth for the Perth market, remains dependent on improvement in the local economy.
Unit markets will continue to be influenced by significant levels of new apartments, acting to push supply ahead of demand. The impact on local prices will vary, so keep your eyes out for a bargain on the unit market. The Sydney unit market is set to remain strong, due to a chronic under-supply of units and solid demand, holding prices strong.
This makes 2017 a great time for Sydney sellers.
Record new apartment supply in the Melbourne CBD will continue to outstrip demand, with downward pressure on prices to continue in that submarket. Strong demand and lack of supply for suburban units, however, will offset the weaker CBD market. This means that overall Melbourne unit prices growth is likely to remain positive over the year. If you’ve ever considered selling up and moving to the CBD, 2017 may be your time.
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