One analyst expects Melbourne to ushered in double-digit house price growth early next year, even if there is no other interest rate cut. Louis Christopher, general manager of SQM Research, said the growth momentum since the May election was accelerating.
“I don’t rule out the possibility of a new housing boom,” he said. He said many signs have already pointed to a strong rebound, including a reduction in housing stocks, an increase in the clearance rate and an increase in the asking price of the home. “Our interest rates are low and credit restrictions are relaxed. I am more and more confident to see double-digit growth in the Sydney and Melbourne housing markets, even if there is no other round of interest rate cuts,” he said. “In fact, I think we I will see this in the next year.”
The asking price of the house has risen by 5.6% since it hit the bottom before the election. SQM’s data shows that housing prices in Melbourne have risen slightly.