PHOTO: A year ago, major housing markets were in a downturn, with prices falling and home owners hesitant to sell.
House prices in most Australian capital cities are set to hit new records this year as home buyers take advantage of very low interest rates, a new forecast shows.
Sydney house prices are likely to jump 10 per cent to a whopping $1.25 million median by the end of the year, Domain’s Property Price Forecasts – February 2020 show.
This would be the fastest growth of any capital city and take prices to 5 per cent above their previous peak, recorded in June 2017.
Melbourne house prices are expected to gain 8 per cent this year to a record $970,000 and then keep rising to reach a median of $1 million before the end of next year.
Records are also tipped to tumble in Brisbane (up 8 per cent in 2020), Canberra (up 4 per cent), Hobart (up 3 per cent) and Adelaide (up 3 per cent).
“Price growth is likely to be much stronger than I, and almost everyone else thought, even six months ago,” Domain economist Trent Wiltshire said.
“People thought there would be a rebound, but not this rapid and also perhaps not as widespread.
“It’s not just a Sydney and Melbourne story.”
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