Property Market Predictions for 2017
The new year is upon us, and the property market forecasts are out. If you’re an investor, aspiring homeowner or looking to sell, it’s important to understand what 2017 could mean for you.
Here are some of the most important expert predictions you need to be aware of:
Interest rates will rise
At the moment, home loan rates are at record low levels. But at some stage in 2017, they’re set to rise.
If you’re planning on buying property this year, our advice would be to do it as early as possible with a fixed rate home loan. That way, the rate changes won’t affect you, because your rate will have been predetermined.
More people will opt to rent, rather than buy
For the most part, it’s assumed that people who can’t afford to buy property choose instead to rent.
However, in 2017, that simply will not be the case. We will see more people choosing to rent instead of buying, regardless of their financial situation.
Sydney lenders will be more cautious
Sydney lenders will see more risks and volatility in 2017 than in previous years, and as a result, will be more cautious in handing out home loans.
Some investors may choose to head elsewhere to make their investments, but be cautioned: It’s always important to understand the marketplace before making investments. If you’re investing in property in a new area, be sure to thoroughly investigate first.
Apartments will dominate the market
The past year was the first year ever in which more apartments were built than houses. This trend will continue into 2017, meaning that the problem of “oversupply” isn’t set to go away soon.
Property value will increase
According to Mozo’s property investment and lending expert, Steve Jovcevski, property prices are expected to increase by these percentages in the coming year:
At Mortgage House, we’re no strangers to the homeowner’s journey. It’s a long (but rewarding) one.
But don’t worry, we can help with that.
If you’re thinking of buying a home, you can contact us for advice about the best options for you when it comes to your mortgage. The cost of your mortgage can drastically affect your financial planning, so it pays to speak to the experts about it.