Australia’s housing market is set for “a year of flat activity” in 2015, according to Domain Group senior economist Andrew Wilson.
Dr Wilson said that while 2013 was a year of expansion with strong price growth, and 2014 was a year of moderation, activity in the housing market is expected to be subdued next year with most markets struggling to hold the inflationary line.
“Although the case is growing for an official rate cut in 2015, without improved economic conditions and a return of incomes growth and confidence, this is unlikely to have a significant impact on housing markets,” he said.
Dr Wilson said that as a consequence, house price growth for most capital cities will hover around the inflation rate in 2015, but the rate of growth in each city will depend on local supply and demand factors.
Sydney is set to remain the best performing market, with growth likely to be at least twice the inflation rate, he said.
“A top performing local economy and the continued undersupply of housing will generate consistent buyer activity over the year,” he said.
“Inner and middle-ring mid-price-range suburban regions are set to continue to record double figures price growth.”