Buyers who are looking to become homeowners or real estate property investors this year may be wondering what real estate values are expected to do. Knowing what home values may do this year will give you a good idea of what you can expect to pay, the level of buyer competition you could encounter and the availability of properties.
Property outlook for early 2014
Before we can look ahead, we must look behind us. Reviewing the changes in property values over the course of 2013 will give us a good idea of what to expect this year.
- Sydney values have skyrocketed over the past 12 months thanks to increased buyer competition and low interest rates. According to new research from RP Data, home values climbed 14.5% over the course of 2013 in Sydney. While price growth isn't expected to be as strong this year, industry analysts are predicting growth in the vicinity of 10%.
- While prices were soaring in Sydney, they were stagnating in Canberra, with the capital city recording a 3.5% lift in home values over the course of 2013. Moving forward, real estate costs are expected to increase fairly steadily again this year.
- Melbourne enjoyed significant growth in home values over the last 12 months – rising 8.5% over the course of the year. This follows 10 years of fairly significant growth, with home and unit values climbing 5.8% and 5.0% respectively over the last decade. Moving into 2014, Melbourne's oversupply issue is likely to affect its home values. That said, buyers should expect to see home values climb by upwards of 5% in 2014.
- Brisbane started off 2013 with slow growth, but the city saw increases in sales volumes and home values over the second half of 2013. By year's end, home values had climbed 5.1% in the capital city. Heading into 2014, the story is expected to be much the same, with home value growth sitting around 5% for the year.
- Perth has enjoyed substantial growth in the real estate market. Home values surged 9.9% over the course of the year, and a low supply of available housing has driven competition up. Vacant lot values are up as much as 15 percent in some areas. It may be difficult to break into the market in Perth, but owner-occupants and investors stand to earn high returns when purchasing at the beginning of 2014.
Much of the country will see steady rises in real estate prices throughout 2014 thanks to a combination of low interest rates and fierce buyer competition. Buying in February is recommended to avoid some of the increases in prices that will occur this year. If you're ready to take the plunge into the home-buyer market, consult these home buying guides for further information.