With the RBA’s first decision in for 2020 (which you can read my thoughts on LinkedIn >here<) and property listings on the rise in the lead up to the upcoming selling season, we delve into Tom Panos’ Real Estate Market Trends & Predictions for 2020.
2019 ended on an incredible high with soaring prices and high clearance rates. In 2020, anticipation for more property highs lies ahead for the coming months.
But with whispers of the RBA potentially looking at cutting rates for April amid continued tensions over the US-China trade talks, stagnant wage growth, falling unemployment, the economic cost of bushfires and the coronavirus, Australia’s economy could be treading water – with obvious impacts upon the national property market.
Leading Real Estate coach, trainer and guru Tom Panos is always on the money with Australia’s housing and financial markets. He’s certainly the go-to in real estate, gaining accurate and relevant insights from his connections with real estate agents, mortgage brokers and the finance sector, which he balances with his shrewd observations into human behaviour.
In an incredibly informative 55 minute video, Tom Panos sits down with Chief Economist of REA Group and leading property market expert Nerida Conisbee to predict the Australian property market for 2020, with forecasts dependant upon a few scenarios.
Breaking Tom’s Notes Down
Cash rate remains unchanged
- the economy will recover
- the AUSD will be worth US 0.65c – 0.75c
- APRA The Australian Prudential Regulation Authority will intervene with the economy until late 2020
- Sydney house prices will look to rise from 10% – 14%
- Overall Australian property market sees capital cities average price increase from 7% to 11%
RBA cuts rates by 0.5%
- Global trade wars will become stable
- The Australian economy will become stable
- APRA won’t need to intervene with the economy
- Sydney house prices will rise from 11% to16%
- Overall Australian property market sees capital cities average price increase from 8% to 13%
Global trade talks collapse
- economy weakens
- RBA cuts cash rate to 0 by end of 2020
- Quantitative Easing starts to slow down the economy
- Sydney house prices will rise from 0% to 4%
- Overall Australian property market sees capital cities average price increase from 1% to 3%
The Housing Rental Market forecast shows capital cities average weekly rental is $549 per week – a 0.7% drop
The Unit Rental Market forecast shows capital cities average weekly rental is $435 per week – a 0.7% drop
The drops are largely due to Sydney with the largest decreases to affect the averages, though Darwin still comes out on top with the largest decrease in the rental market overall.
The 2020 forecast for all investment properties will see a 0 – 3%.
Watch for yourself Tom’s video “Australian Real Estate Market Trends & Predictions with Chief Economist, Nerida Conisbee“.
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