Melbourne expects house prices to rise 14% next year, the highest rise in Australia. (picture of Daily Mail)
House prices in Australia`s big cities are expected to rise by at least A $100,000 in 2020, which is good for homeowners, but for young people, it means more people are having trouble fulfilling their dreams.
The realestate market in Sydney and Melbourne is expected to return to double-digit growth next year after a record low earlier.
CoreLogic expects prices in Sydney to rise 12 percent in 2020, meaning the median price for independent homes will rise from A $956249 to A $114750. Melbourne`s house prices are expected to rise 14 percent over the same period, with the median price of independent housing climbing from A $774023 to A $108363.
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Canberra and Brisbane are also expected to see double-digit growth, up 10 per cent, with median independent house prices up A $68,780 and A $54,399, respectively.
Perth, where house prices have been falling since 2014, is also expected to rise 6 per cent next year, meaning the median price of independent homes rose A $27,203.
Home prices in Hobart are also expected to rise 6 per cent next year. Until recently, Hobart was the strongest performing realestate market in Australia, with the city`s median independent home price up A $30,550 next year.
Adelaide prices are expected to rise modestly by 5 percent, or about A $23464, while Darwin`s prices are expected to be flat.
CoreLogic`s head of research, Tim Lawless, said another 2020 rate cut could hurt affordability as more investors compete with younger buyers.
"Although official interest rates are likely to fall again next year, deterioration in housing affordability and increased competition with investors could have a negative impact on the activities of first-time buyers in the real estate market..." he said.
Moody`s ' s Analytics and SQM Research, the realestate analysts, also predict double - digit growth in Sydney and Melbourne next year.
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The Reserve Bank of Australia (RBA) is widely expected to cut interest rates again in the first half of 2020, bringing official interest rates to a record low of 0.5%.
Lower standard variable-mortgage rates mean that investors can repay their loans with rental income, while still earning annual cash-flow profits, he says.
