According to the latest NAB research Australian residential property growth has continued to surpass expectations in recent quarters, suggesting more limited scope for further gains.
Consequently, NAB Economics has reduced its forecast for detached house price growth in 2016. But, they’re still predicting growth, nationally prices are forecast to increase 2% in 2016 (down from 3%)
While price growth will slow, a sharp correction in prices is still not expected given supportive market fundamentals and continued foreign demand for new dwellings.
Risks have increased, however, especially in the apartment market which has seen a sharp increase in construction activity.
If you’ve seen or heard any media of late you will have noticed that all lenders are increasing home loan rates regardless of any RBA movements, we believe this will continue. If you would like some guidance and an educated idea on what may happen with your home loan don’t hesitate to call us today.
