The housing market is starting to show significant signs of growth after some stagnant years.
The national housing prices rose 1.3% in the Sept qt 2013, up from 0.1% according to the recent NAB survey. Leading the way was NSW, then VIC, with WA posting some mediocre declines across the last 3 quarters.
According to the survey, there are further growth rates forecast in the next 1-2 years of between 3.3% and 4.5% respectively however NAB expects that the unemployment rates may dampen these growth estimates in major cities back to 3.5% next year and 3% in the next 2 years.
Demands improved for both new and existing property but credit and employment numbers will be determining factors to overlay when analysing Australias future property trends.
First home buyers are dropping as well as demand from investors (with NSW as the exception), and QLD looks likely to outstrip the Australian average estimates across 2014 and 2015.
The rental market has also steadied but seems some small growth numbers however it varies by state. NAS has increased 0.9% over the quarter, with Queensland increasing around 0.7% with Victoria up 0.3%, however WA, SA and NT all seeing some declines from 1-3%.
Rents are expected to grow 3.1% in the next two years compared to 2.6% previously with QLD expected to lead the pack with 3.9% growth and NSW 3.5%.
Owner occupiers jumped in regard to their share of the new property market up to 41% from 36% with Vic and WA spearheading the charge.
Whilst first home buyers declined from 21% to 19% with QLD reporting the lowest numbers at 9% compared to 26% in WA!