Property prices expected to surge
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|Wednesday, 06 October 2010|
Sydney property prices are expected to climb another 5 per cent before Christmas.
According to figures by Raine and Horne, properties in the $500,000 to $700,000 range are expected to face the biggest price hike.
Raine and Horne chief executive Angus Raine said with job security relatively high, buyer activity has increased – leaving Sydney’s housing supply in question.
“Sydney’s chronic housing shortage, which is set to hit 200,000 homes by 2013, and buyer demand will push up prices for homes priced between $500,000 and $700,000 by the middle of December,” Mr Raine said.
While Mr Raine applauded the RBA’s decision to leave interest rates on hold for a fifth straight month, he cautioned that a monetary policy tightening closer to Christmas may impact some markets.
“Home owners again dodged the interest rate bullet this month, despite many pundits predicting a 25 basis point increase,” Mr Raine said.
“Likewise, it’s nearly impossible to know what the Reserve Bank Board will do in November and December.”