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Last year saw a lot of ups and down for the property market, but what can home buyers and investors expect from the property market this year?

Last year saw a lot of ups and down for the property market, but what can home buyers and investors expect from the property market this year?

The property market is as competitive as ever and it does not look like it will slow down anytime soon. If you are planning to purchase a house in 2015, you can expect that there will be plenty of other prospective buyers out looking as well.

Recent figures from CoreLogic RP Data’s daily home value index show the average growth in home values across the major capital cities was 8.4 per cent. Sydney saw the biggest value growth of 12.7 per cent, followed by Melbourne with 7.8 per cent. The other major cities did not see as much of a growth in property values with Brisbane at 5.3 per cent, Adelaide at 4.7 per cent and Perth at 1.4 per cent.

However, Tim Lawless from RP Data has predicted that Brisbane property prices will outperform other capital cities in 2015 and the property market will also see Sydney’s and Melbourne’s strong growth subdue slightly.

It is also set to be a somewhat unpredictable year for interest rates as some industry experts have differing opinions about when and if the rate will change. In 2014, the cash rate remained unchanged at 2.5 per cent and has been this way since August 2013. This has been great news for home buyers as mortgage repayments have been at a record low.

However, this may not be the case for the rest of the year.  According to the AFR Smart Investor, five industry experts predict that the cash rate will be cut this year, with two experts predicting it could be as soon as February.

According to a recent Fairfax Media interview, RBA Governor Glenn Stevens stated that he would be happy to leave the cash rate where it is for the time being due to the recent economic growth in the US, which has also affected petrol prices.

So, if you are planning to take out a home loan this year, it is important not to assume that interest rates will remain at a record low. There are different home loan options available that can suit different needs. If you want to find out which home loan would best suit you, give our friendly team a call on 13 72 62 and they can walk you through the steps.