Real Estate Business Daily quotes McGrath Real Estate chief executive officer John McGrath saying he expects house prices to rise by as much as 10 per cent in 2010.
“Historically, rates are still low. Of course we’re expecting some more rises, which we’ll see in a short space of time. But we’re finding 7 to 9 per cent is what most people are used to in terms of the mortgage cycle, so that will still be at the bottom end of that range.
House prices across Australia’s eight capital cities rose 6.2 per cent in the third quarter of 2009 from a year earlier, snapping three straight quarterly declines, according to the Australian Bureau of Statistics, unfortunately without quantifying those three declines - did they
three falls exceed the recent rise, or are we now ahead of this time last year?
“There has been very little construction over the past few years. While home building rose towards the end of 2009, the building cycle is a slow one, so I suspect that over the next couple of years, there will continue to be a lack of supply. But there is development opportunity in abundance, once the lending frees up, and people start building again,” he said.
No mention of Westpac's decision to freeze lending, as per my blog earlier today, which some predict could cause a serious drop in house prices!
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