What the future brings is one of those things that have been puzzling people since the dawn of time. And, just as it has ever been, it is impossible to be 100 percent certain what is actually going to happen tomorrow, let alone in 2020. Still, by studying the current data and the latest trends and numbers in the real estate market, certain predictions can be made about what direction the housing prices will take as we move towards 2020.
Take a look back to see the future
In order to forecast what is going to happen in the future, it is strongly advisable to study the past trends, try to establish a pattern of development and see whether the trend is equal in all parts of the country. The statistics show that the trend of housing price increase has been steady for the last decade and a half. Still, there are substantial differences when it comes to prices in different cities and areas. Why is this so?
Present day and the near future
The reason why some real estate prices rocketed over the last decade and some remained almost the same or even decreased, lies in several important factors, which will remain relevant in the years to come. First of all, Sydney and Melbourne are the only two Australian metropolises where property values outgrew inflation in the previous five years. The reason behind this is the increased overseas migration towards these cities due to the rise of job opportunities, which led to shortage of available housing. On the other hand, the fact that Olympic Dam extension was not completed, combined with the government spending cuts in Canberra and Darwin, and weaker economic trends in Hobart, Perth and Brisbane caused all of them to moderately or significantly fall behind Melbourne and particularly Sydney. And, it seems this trend is not going to change.
Should you buy or flip before 2020?
Once again, it depends on the area you have in mind. Sydney and Melbourne will continue to grow, just at a slower pace. If you plan to flip the property in these cities, research the sites and buy once you find something interested with an adequate property styling. You will surely make a profit. If you are planning to buy a property for yourself there, now is the time, too. On the other hand, Western Australia and Victoria are predicted to stay flat or even decrease a bit, making them less favourable for immediate purchase. 2020 will be a better time to buy there. When Brisbane is concerned, the estimates are that the property value will increase, primarily since public job cuts are over with the change of the local government. Adelaide, on the other hand, can expect a price drop due to downsizing in the car industry in the following years, while Perth will face a similar trend due to the fall in commodities. Lastly, Canberra can take both the rising and the falling road, depending whether the governing structure changes before 2020.
The migration influence
The aforementioned overseas migration has had a strong impact on the housing prices in Sydney and Melbourne. However, this influence can indirectly spread to other areas, as well. The increase of population in Sydney and Melbourne may cause some of them, especially the elderly, to sell their properties and migrate to other cheaper parts of Australia. If this becomes a trend, it will inevitably lead to a price increase in their new places of residence.
As you can see, there are a number of factors that can and will influence the housing pricing until 2020. Closely monitoring all of them is the only way to predict the best moment to buy or sell a property. Therefore, do your homework and happy bidding.