SQM Research has today released its 3rd annual Housing Boom and Bust Report for 2014, which forecasts an accelerating housing market recovery in 2014, led by Sydney, which will experience a house price boom, with prices in that city now expected to rise between 15-20%.
From the Media Release:
SQM Research predicts significant price rises for Sydney of between 15-20% with the weighted average capital city gain in 2013 to be between 7% – 11%. The forecast takes into account an interest rate rise sometime between mid to late 2014. Low interest rates and an improvement in sentiment towards the national economy will further drive buyer interest in the national housing market.
Speaking of the report, Louis Christopher says “The housing recovery that commenced in the 3rd quarter of 2012 for most capital cities is now about to enter into a more accelerated phase from what has generally been modest price rises to date. However, the results will be quite varying from city to city. Canberra for example, will record house prices falls of between 1-4%. Melbourne will record just modest to moderate price gains of 4-7%. Indeed that is the range for the capital cities when you exclude Sydney.
Sydney though is turning into a beast unto itself. We have a strong conviction that the ABS will record 15-20% house price rises next year for that city. Such a rise will create a large dilemma for the RBA, especially if the national economy is still running below average growth.”
