Last year was a stellar 12 months for the national residential real estate market, after recording large increases in median house prices and values.
However, a new report from Australian Property Monitors (APM) has shown just how significant some of the growth was in 2013 in capital cities across the country.
The Housing Market Report for January 2014 identified 2013 as the best year for price growth since 2009, after national median house prices rose by up to 9 per cent. This was only 1 per cent lower than the high recorded in 2009.
APM attributed this activity to a number of factors, including attractive interest rates for home loans, which had a flow-on effect to affordability in many parts of the country.
Sydney a strong contender
Price rises in Sydney were main drivers for the boost in national median house prices, after the NSW capital recorded a yearly rise of up to 13 per cent.
Interestingly, it was suburbs in Sydney’s inner west, north shore and west suburban regions that saw prices skyrocket by up to 20 per cent in some areas. As a result, prices in these regions are hovering above and below $1 million while confidence and enthusiasm is at a strong point, according to APM.
However, price growth is expected to slow around the middle of this year and settle on a total of 5 to 7 per cent over 2014. This could create a number of opportunities for first home buyers in the city, as investor activity drops slightly.
Melbourne not far behind
Despite Sydney being the stellar performer among the eight capital cities, Melbourne also posted some solid results. Over 2013, the Victorian capital held a rise of 8 per cent for house prices over the year, while also boasting strong auction clearance rates.
The inner east prestige market was found to be one of the best performing areas over the year, which could lead to lucrative gains for luxury real estate owners in the region.
House price growth will ease this year, according to the APM, as well as buyer activity.
These results could suggest now is the perfect time to list houses for sale before prices begin to slow, following a year of solid growth.
Article first appeared on, and is courtesy of, raywhite.com.
Photo Credit: Andrew_Writer via Compfightcc
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