Ho ho ho! As everyone prepares for the festive days ahead, the New Year is right around the corner and with it will come renewed property speculation, interest rate analysis, and the long awaited bubble burst – or will it?
So what looks likely for property buyers, sellers and investors over the next 12 months?
Interest Rates
18 years ago the Reserve Bank kept interest rates at 7.5 percent for 17 meetings in a row. Right now, if they continue to keep interest rates on hold until April in 2015 they will have broken that record. There are several predictions for when the interest rate will finally move in 2015 – starting as soon as February to way out in August, with the majority of opinions settling on April.
Hot Sydney Suburb predictions
While the sceptics are waiting for the Sydney property market to go into meltdown after a year that went from hot to hotter, others are picking Western Sydney as the place to invest as the urban sprawl moves every westward and the geographical heart of the city, Parramatta becomes ever more developed, in terms of infrastructure, community and business. On the eastern edge of the city Millers Point, nestling between the top end of town and the Barangaroo, with the added bonus of it’s harbour side location looks set to be a property flashpoint. Other suburbs tipped to perform very well are Balmain, Camperdown and Forestville.
The bubble – bigger or bust?
Sydney’s property bubble has defied gravity for longer than anyone predicted and while there are those who think that a bust is imminent, the market continues to not fall. There have been moments where growth has slowed but rather than signalling the beginning of the fall, it has been more a breather before the next rise in investment and price increases. Overseas in the US and the UK, there are market corrections taking place and it is only a matter of time before the Sydney market can no longer sustain the current form. How long that period of time is, is anybody’s guess and all indications point to a solid start to 2015.
From everyone here at Amanda On My Side, we wish you a Merry Christmas and a safe and prosperous New Year. We look forward to assisting you with your property needs in 2015.
