Despite the stock market gaining media attention for its turmoil, the Australian house market is seeing a significant improvement. Two major reasons for this rise are the lower Australian dollar and lower interest rates.
The benefits of Australian house prices climbing is that it raises financial confidence in communities and enables investors to adjust home borrowing or purchasing to their lifestyle preferences. This is especially the case with older investors.
The Australian housing market is also achieving popularity with the Chinese market as they are the biggest overseas buyers of Australian homes at the moment. This is due to the fact that the prices of houses in China have risen at an alarming rate, about ten times faster than the Australian rate.
The rise in the Australian market is predicted to start in Sydney and progress to Melbourne and Brisbane. The decline of the mining boom could also have an affect and see more growth in the eastern states as some mines close.
It is also believed that once the Australian political environment becomes more stable, the rise in the house market will follow suit and also increase in stability.