Experts tip property prices to rise in every capital city: Finder

Property values are set to rise by August 2020 across the nation, according to Finder, Australia’s most visited comparison site.  

In the latest Finder RBA Cash Rate Survey™ experts and economists gave their forecasts on 12-month change of property prices in Australia’s capital cities.

The experts, on average, now anticipate the property market will be on the way up over the next year.

Graham Cooke, insights manager at Finder, said it’s too soon to tell if this is an emerging recovery in the housing market or merely a ‘dead-cat bounce’.

“Most economists surveyed foresee small levels of growth across the board, but a few tipped prices to tumble, especially in Sydney and Melbourne where one expert predicted a 7% drop."

“Whether you see this as a falling feline or the beginning of a true rebound, it’s clear that the full effects of the RBA’s recent cuts have yet to play out."

“However, after one of the strongest weekend clearance rates in Sydney in recent months (71%), there is definitely a detectable pulse,” Cooke said.

Canberra came out on top with a 2.27% predicted growth on average, followed by Hobart (2.19%) and Brisbane (1.81%).

Cooke said those considering getting on the property ladder need to get their ducks in a row.

“Prospective first time buyers should look at arranging pre-approval for finance soon if they want to take advantage of low rates before prices increase.”

With rates at an all-time low, the Reserve Bank of Australia (RBA) held the cash rate at 1.00% for the first time in three months. 

Nearly all (96%, 44/46) experts surveyed predicted the hold, although up to two more cuts are likely by the end of the year. 

Cooke said people might be missing a trick by not considering a fixed-rate loan.

“We’ve seen a lot of very low fixed-rate offers hitting the market of late, some as low as 2.79%. "

“Fixed rates may be well worth considering – as we’ve never seen rates this low – but the best path may be a split loan."

“Think of this as the best of both worlds: if rates drop you get some of the benefits and if they increase you only get part of the pain."

“Even if you’ve been on a variable loan for five years, it’s not too early to refinance with rates at a record low,” Cooke concluded.