While the property witnesses an explosive growth with property prices, BIS Shrapnel, an economic forecaster recently stated that weak first home buyer activity and increasing interest rates is expected to result in slower growth of housing prices during the year 2010.
However, BIS Shrapnel asserts in its Residential Property Prospects, 2010 to 2013 report that although the prices of property are not expected to decline and rents are inclined to witness an increase due to the lack of supply.
Angie Zigomanis, senior project manager with BIS told that first home buyer activity witnessed a decrease after the termination of first home owner’s grant boost during the end of year 2009. He also asserts that affordability has been affected since interest rates rise above their low levels.
The report also gives an indication that investors are expected to compensate for decrease in first home buyers. This also implies that property prices are expected to increase, but not with the recent trends.
“The more stable interest rate environment is expected to underpin purchaser confidence as economic conditions continue to strengthen, and should continue to push through moderate house prices rises,” Mr Zigomanis said.
He also asserts that on an average, the growth in prices of houses is expected to remain in the mid-single digit percentage range during the coming three years.
Paul Castran and Mark Forytarz, the two pillars of Castran Gilbert hold years of experience in the Australian real estate market. Both of them have presided over many real estate sales. Mark Forytarz and Paul Castran express their views about the ongoing situation in real estate market.