First home buyers told to move despite continuing property price growth
Although the real estate market is beginning to cool after rapid growth, there’s another big problem looming for first home buyers.
Dr Lowe
remains vague on the timing of a rise in the cash rate but says a move later
this year is “plausible”. “Interest rates will go up,” he told the
National Press Club in answer to a question from the floor. Given the
predicted rise, Mr Cooke said it could also be a good time for people with home
loans to refinance their mortgage and lock in a better interest rate. “If
anybody is looking to either get on a housing ladder or has a mortgage, now is
a really good time to start getting active about it,” he said. “Because
(interest rates) are not going to be this low in three months’ time.”
In Sydney,
house prices are predicted to increase at a rate of 3 per cent - an average of
$46,000 - by the end of the year, putting the average price house at $1.39
million. House prices in Melbourne and Adelaide are
predicted to rise at the same rate, increasing by an average of $31,000 and
$18,00, respectively. Brisbane is predicted to see the largest growth rate - 5
per cent - which would see house prices rise by an average of $37,000.House
prices in Canberra are predicted to rise by about 4 per cent, putting the
average price of a house at $993,000 by the end of the year. Perth is
predicted to experience the slowest rise in prices - at a rate of only 2 per
cent.