Property prices likely to keep rising

First home buyers may find life even tougher in 2015, with a survey of 37 economists and industry forecasting property prices to rise even further.

According to the survey by comparison website finder.com.au, 69 per cent of respondents believe property prices will continue to climb.

The survey also found that 14 per cent expect house prices to stabilise, while 17 per cent expect prices to fall next year.

A finder.com.au spokesperson said although most of the experts forecast an increase in property prices, they do not expect the higher costs to dramatically impact first home buyer numbers.

“Two in three are expecting the same level of first home buyers next year compared with this year, with only five expecting fewer first home buyers,” the spokesperson said.

Now is also a good time for first home buyers who are ready to enter the market, the spokesperson added.

“With the national median property prices across our capital cities hitting $545,000 in October – 8.9 per cent higher than the previous year – it’s a good time to jump into the property market if you are prepared,” they said.

“But there is no point rushing in [if] you’re not ready, because overstretching your budget could have serious consequences if interest rates rise next year.”

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