Market forecasts for 2017
It’s been interesting to see a few of the more prominent real estate market analysts publishing forecasts of what they expect the various property markets around the country to do in 2017.
I hasten to add that I would always advise our clients to tread carefully where market forecasts are concerned. After all, it was this time last year that the majority of these “market experts” were telling us to expect a quieter market in 2016, with slower growth in prices! That said, I thought I’d pass on what these analysts are predicting, if only to get people thinking about what the coming year may bring.
One of these forecasters was Corelogic, which published data this week that showed that Melbourne’s median property price rose by more than 3% in December alone. So it was interesting to see that they have forecast that we will see a further rise of around 9% in 2017. This compares with a forecast rise of just 5% nationally.
In contrast, the economists at BIS Shrapnel were a bit more conservative, forecasting that Melbourne’s median property price would rise by between 4% and 5%. Again, this was well above the predicted national increase of between 1% and 3%.
Interestingly, there are other data sources that have predicted price rises of substantially more than either of these forecasts. However, I’m not keen to build unrealistic expectations among local property owners, so I’ll leave those alone for now.
The important thing to keep in mind is that, whilst the forecast numbers may vary between different sources, the general consensus seems to be that we will see another year of growth in property prices in Melbourne. This is certainly good news for anyone planning on selling in 2017, although if you plan on buying as well then it’s going to be a case of “swings and roundabouts” once again.
Don’t forget that if you are interested in finding out how much more your property could achieve in the strong market conditions we are currently experiencing, you can give us a call at any time.
Director – Barry Plant Real Estate
Keilor East, Essendon & Niddrie