We’ve just pulled the crystal ball out of the bottom drawer, dusted it off and thought we’d have a look at what may be in store for 2016.

Having said that, who could have possibly predicted this years activities? Interest rates going down to all time lows - and staying there. Property prices continuing to climb with clearance rates soaring - even through the Melbourne winter months. Changes for overseas investors are also starting to take hold.

So, where will we be in a year? Here's our summary, based on our extensive experience within the Real Estate Market.

Interest Rates: With the banks no longer following the RBA's interest rate cut lead, the RBA may be tempted to adjust the rate down again in December to motivate the banks to lower theirs. However, this may send a signal to the banks to raise theirs more. It's a bit of a balancing act right now. So our prediction is no change for at least 3 months.

Housing Prices: Whatever happens, 2016 won’t be as good to house prices as 2015. Here's why:

• The Australian economy is slowing. Banking regulations targeting investors both local and overseas, and now owner occupiers too, are in full swing.
• Population growth, key to demand, is slowing too.
  
  

Summary:
These key factors place pressure on housing demand. But that doesn’t necessarily suggest a crash is on the way either. The weaker dollar and low interest rates, will see 2016 waiver between slower growth to flattening out for most of the year and then a possible price decline by 2017.
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