Added over 8 years ago

Federal Budget positive implications for Sydney Housing Market

The federal budget has positive implications for Sydney's housing market, providing the basis for price growth in the next year. 

Interest rate rises have put a dampener on things during the past six months, with auction clearance rates and median house prices falling.

Following strong growth in 2009 and last year, Sydney's median house price fell 0.4 per cent in the March quarter.

The budget forecasts a strong economic performance for Australia, with GDP predicted to grow by 4 per cent in 2011-12, fuelled by the resources boom.

The budget also predicts increasing demand for labour as a result of this growth, with the unemployment rate expected to fall to 4.75 per cent, indicating a full-employment economy.

Of all the Australian capitals, Sydney is in the best position for recovery.

As competition for labour intensifies in Sydney and significant skills shortages emerge, incomes will rise, giving prospective home owners increased buying capacity and incentive.

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