PROPERTY MARKET FORECAST 2020
PROPERTY MARKET FORECAST 2020
With the new year underway prospective home buyers and sellers have turned their attention to the Brisbane property markets for the potential of an upturn in house prices throughout 2020.
Despite Brisbane property values declining by -0.6 per cent (the detached housing sector) in June 2019 there is hope yet that a boom will return with analysts predicting a strong comeback for Brisbane over the next 3 years. The end of December finished with a 0.7 per cent change in home values resulting in an overall annual value increase of 0.3 per cent in Brisbane City for 2019.
(Source: realestate.com)
PROPERTY MARKET INFLUENCES
According to market analysts there are a few influences that will affect the housing market in 2020:
an interest rate cut by April from the Reserve Bank
relaxed credit restrictions allowing banks to offer more property purchasers access to a mortgage
the new ‘Comprehensive Credit Reporting’ system
the ‘First Home Loan Deposit Scheme’ implemented since January 1, 2020.
FIRST HOME LOAN DEPOSIT SCHEME
The new scheme will mean eligible first home buyers only need a 5% deposit saved to be able to borrow up to 95% of the purchase price of the property without needing to pay Lender’s Mortgage Insurance (LMI).
Eligibility criteria
Those applying for the loans will need to meet eligibility criteria.
Applicants must:
Earn under $125,000 a year for singles and $200,000 for couples
Intend to live in the home (investment properties aren't supported)
Not have owned or had a share in property previously.
BRISBANE HOUSE PRICES
Managing Director of SQM Research Louis Christopher has predicted the following property price forecasts for 2020 and specifically with ‘record low interest rates and cheap credit an increase in Brisbane home prices by up to 7%’
Source: www.abc.net.au/news/2019-11-14/property-prices-in-2020-sqm-forecasts/11703668
Queensland in comparison to NSW and VIC is often held back by the economy and jobs growth but it has the advantage of relative affordability and higher vacancy rates. With the arrival of further rate cuts and eased lending conditions Brisbane is primed to see price growth for the first half of 2020.
Source: www.realestate.com.au/news/boom-time-forecast-for-brisbanes-housing-market-in-2020/
If you’re in the market for selling or buying property contact our dedicated team at Horrocks Solicitors to receive a competitive fixed quote today for conveyancing services from Queensland’s best.