Housing Market Outlook
2014 was another strong year for the property market, with dwelling values climbing 7.9 per cent across the combined capital cities.
According to the CoreLogic RP Data Home Value Index, the overall growth in the market last year was largely driven by Sydney and to a lesser degree Melbourne.
Sydney dwelling values increased by 12.4 per cent throughout the 2014 calendar year while Melbourne values increased by 7.6 per cent.
Over the past year, dwelling values also increased by 4.8 per cent in Brisbane, 4.3 per cent in Adelaide, 2.1 per cent in Perth, 3.5 per cent in Hobart and 1.6 per cent in Darwin. Canberra was the only capital city to record a decline in home values, with values falling by 0.6 per cent.
It is likely that values will continue to rise until such time as interest rates increase, however the rate of growth may slow.
But while the housing market will continue to record fairly significant growth in dwelling values, rental rates are expected to grow at a sluggish pace and yields are predicted to trend lower.
Moving forward, 2015 is likely to favour sellers and buyers before renters.
Source: Tim Lawless, Head of Research, CoreLogic RP Data