During the housing boom in Australia, plasterers in Sydney could hardly cope up with the demand for their services. However, the housing boom is over and Australia is now officially experiencing falling prices. According to Deloitte Access Economics, there were predictions that prices will fall as interest rates go up and it is true particularly in the large cities.
Deloitte partner, Chris Richardson said that the prices of homes in Australia have streaked past any sensible valuation process. In Sydney and Melbourne, Australia’s largest cities, housing prices are going down by as much as $1,000 per week. In the last 5 years, prices have gone up across the country because Australians were attracted by the significantly low interest rates. Now, they have loaded up on debt and investors are cashing in.
Typically, the economy is damaged when there is a drop in property prices but in this case, indicators say that the fall is quite mild. The country’s economy continues to accelerate; however, investors are shifting to safer territories.
The downward pressure in prices is due to the following factors: interest rates have gone up, banks have become more careful in approving loans and foreign investors are becoming more cautious. Meanwhile, while home prices are falling, there is better wage growth. According to Deloitte’s business outlook, wage growth has bottomed out in 2016 although there have been some glacial gains.
Mr. Richardson further said that Australia has gone long enough with low interest rates and low wage growth. Both measures are expected to noticeably move. Instead of wage growth being bad news, it will soon be good news with interest rates being the bad news. Aside from slowly starting to swap places, both of them will slowly move over in time. Even then, it is still important to provide protection for families that have taken too much debt.
Meanwhile, you have some issues with the interior that needs fixing, your best option is plasterers in Sydney that can provide a wide range of solutions. You certainly want your visitors to be impressed once they enter the front door. Allow the plasterers to fix your cracked walls and unsightly chipping paint.