The home loan market has always been an integral part of the financial landscape in Australia, and this year will be no exception. So, what about home loan market predictions for the coming year?
Changes to influential factors
There are a few different aspects of the overall financial landscape that will affect home loans. In 2018, the factors that will be affecting the home loan market include construction levels, the general cost of housing and market stability. This year, it will be more important than ever before to watch the changes to these factors in order to predict the home loan market.
There are some economists who predict that over the next two years, there will be up to eight changes to interest rates. This will affect the home loan market in that it will add extra cost to the average monthly mortgage repayment. Whilst it’s likely that in the grand scheme of things this rise will be small, for many homeowners this extra cost might not fit within their budget.
A positive change that’s been predicted for the home loan market in 2018 is an increasing stability when it comes to property prices. This is due to an increased amount of housing now available on the market, as well as there being less demand from investors.
What this all means is that, if you’re looking to get into the home loan market, there’s never been a better time. Price rises and falls are incredibly predictable right now, meaning you’ll be able to carefully plan your investment in preparation for the economic changes ahead.