Wealth management firm Morgans has tipped house prices to continue to rise throughout 2021 and possibly for “years to come’’.
Morgans Stockbroking economist Michael Knox said the recovery in house prices was healthy.
“It has years to run as full-time employment recovers over the next few years with the coming business cycle,’’ he said.
The likelihood of interest rates rising was also low with Knox believing that the Reserve Bank would struggle to achieve its inflation target until unemployment was below 5 per cent.
“It will take years to achieve that level of unemployment. It is very unlikely that inflation is going to be a problem during this period. Our view is that full employment in the Australian economy is at 4.5 per cent.
“We think it’ll take not less than four years for growth to get unemployment down to that level.’’
This is a view shared by leading property researcher Terry Rider.
“This year will deliver a nationwide property boom. I have few doubts about that and my confidence is strengthened by the number of commentators who are now forecasting a year of strong growth. It’s not often we see all kinds of analysts agreeing about what will happen with property prices.”
This is what we are finding in the local market that we operate within. Homes are coming onto the market and are being sold within a short period of time, usually for really exciting prices.
The number of people turning up to our Open Homes is high….
… and we are often receiving multiple offers on properties.
On the rental side demand for quality properties is also high and we are seeing good rent increases for our investor clients.
So if you would like to see where your property sits in this current market, contact the team at Madeleine Hicks Real Estate now.