Housing Market for 2007

Prices for houses in NSW and Victoria are expected to decline further in 2007 due to the slowing demand from deteriorating home loan affordability caused by three interest rate rises last year. The Real Estate Institute of Australia predicts growth in Sydney and Adelaide will remain flat, slow in Perth, Melbourne, Brisbane and Canberra, but gain momentum because of interstate migration and strong commodity prices in Queensland. The rental demand outstripped supply in every capital city last year with the rents increasing on avarage by whopping 9.8 per cent.