Adelaide house prices expected to rise by 40% over 5 years
The article below appeared in The Adelaide Advertiser last week. House prices in Adelaide have certainly been a lot higher than we anticipated. The only consolation is that now we have bought a house it should be a good investment.
Forecaster tips house price rise of 40 per cent in five years
Article from: </IMG>
March 28, 2008 11:40am
HOUSE prices are expected to rise by as much as 40 per cent during the next five years, according to economic forecaster BIS Shrapnel.
BIS Shrapnel director and chief economist Frank Gelber said housing affordability, already at record lows, would sink even lower as demand continued to outstrip supply.
Mr Gelber said there was currently a construction shortfall of 30,000 dwellings, but has forecast that number would grow to 60,000 by June this year and 129,000 midway through 2009.
An environment of rising interest rates had compounded the problem with people choosing to wait before buying or building property, he said.
This also meant that when interest rates stopped rising or eventually started to fall, there would likely be a surge in demand for housing which could result in a price explosion.
"We've got rising interest rates suppressing any upswing in demand for housing ... and we need to wait now before that demand comes through," Mr Gelber said.
"But when it does, it will be very strong."
The figures quoted by Mr Gelber are largely in line with Australian Bureau of Statistics data.
Calculations, based on the ABS established house price index, show that during the 10 years to December 2007, house prices rose an average of 9.9 per cent a year. The index rose 12.3 per cent in 2007.
In the 10 years before that house prices rose an average 6 per cent a year.
In the past 20 years, they have risen an average 7.9 per cent a year
thats good news, or.......
thats bad news,
depending on your circumstances.
Very true, we bought and sold in the UK just at the right time before we emigrated.
Originally Posted by soggy
We are definitely glad we have bought our house in Adelaide now, so will sit and hopefully watch its value increase.
me too :D
Originally Posted by Jessica Berry
We sold our house at a boom time in the uk and bought here in mid 2007 and got our house for $20,000 less than asking price at an exchange rate of 2.39. I was gutted as we just missed the peak of 2.53 by a week and spent weeks cursing myself. In hindsight I now feel very lucky compared to what some newbies are going through. We've just had it valued at $60,000 more than we paid for it. Okay that's all relative as any future house we would like to buy has risen in price just as much if not more. However I count myself as being very lucky.
Good luck to all you guys out there - I wish you all luck
We went to an auction a few houses down the other week, just being nosey and the auctioner said a report had just been published of the top 80 places for mining and South Australia was number 4 in the world, he reckoned the mining boom hasn't even started yet and expects house prices to boom as well as a result of it.
Sounds like we all need to be getting there sooner rather than later!!. We were on with our visa two year ago having had skills assessment and SA sponsorship done then decided to delay visa application as I was accepted for Adult Nursing 3 year Dip course ( which after a year decided wasn't for me but you have to try these things). Hope we're not two years too late
hi this is very interesting. we need to get out asap and buy quick! can anyone recommend morgage brookers or companies please
i heard one of the Brock estate agent sons on the radio this morning and he asked where is hot to buy and his reply was any where near water, mainly the beach and the nearer the better.
I wouldn't panic too much guys - 40% over the next 5 years is actually LESS than 7.9% per year so 40% over 5 years could be classed as "average" growth.
Even 7% yearly growth will net you more than 40% over 5 years...