The residential property market in 2010 will have few surprises, according to the latest predictions from real estate agency Bayleys.The property selling giant's managing director Mike Bayley has consulted his crystal ball and is picking that any house va
The residential property market in 2010 will have few surprises, according to the latest predictions from real estate agency Bayleys.
The property selling giant’s managing director Mike Bayley has consulted his crystal ball and is picking that any house value increases this year will only be small.
“And that would be good for the whole economy – by avoiding a ‘boom/bust’ cycle,” Mr Bayley said.
Mortgages could have a floating rate of between 7 to 8%, Mr Bayley said.
This would limit the ability of many low to medium price range property purchasers to buy, which will remove them from the market of the high end side of homes in the price bracket they are stuck in.
“While higher mortgage rates do not necessarily stop people buying homes, it limits their choice - based on their ability to service loan repayments,” said Mr Bayley.
He predicts unemployment bottoming out at up to 7% with those who are employed earning higher net income rates than seen last year.
“A more solid employment future will provide a level of psychological comfort for those who held off buying a new home or trading up in 2008/2009 because of nervousness about their employment prospects,” Mr Bayley said.
Immigration exceeded forecasts last year. “There is little to suggest this influx will abate in 2010, although forecasts will obviously be revised upward to more accurately reflect the trend which emerged last year,” said Mr Bayley.
The Auckland property market would be likely to benefit the most from any increased immigration, which would “continue to have a steady supply of new buyers/tenants coming on stream”.
