Nicola Kelland - 2014

The property market experienced some strong growth during 2013 with both volumes of sales and prices increasing. So what is going to happen this year?


Lower end of the market
One of the hottest markets last year was in “the first home buyer” market. The effect of the low interest rates, certainly made buying very attractive. As a consequence the lower end of the market became very competitive with multiple buyers for each property. Now with the mortgage restrictions on loan to value, I see this market having less growth this year.


Sections
With the removal of loan to value restrictions on new housing being removed, buying a section and building will become more desirable for first home buyers as a way to get into their first or second home. This market should see some increased activity and as a consequence an increase in value during 2014.


Residential Mid to High End Property
There has been a steady growth in the mid price ranges last year and with the short supply of good family homes in good locations, I see that this market will continue to have some price growth this year. The very top end of the market continues to gain more confidence but has taken longer to recover after the financial recession, I see that this market will also experience growth in terms of both volumes of sales and pricing.


Coastal
I think coastal property is going to have a great year after several terrible years during the financial recession when property values plummeted as owners sold up to reduce debt. If you are going to buy a beach house, this may well be the year to do it, if you have not done so already.