In late 2013, Christopher predicted that Sydney's prices would rise 15%-20% over the 2014 calendar year.
While prices weren't that strong, he was closest to the pin, now that the annual figure are in.
Other experts were notably more subdued, with many tipping that prices would slow significantly in 2014: Domain Group senior economist Andrew Wilson and Property Observer's Jonathan Chancellor both predicted 2013's growth would halve to around 7%. Observer Pete Wargent tipped Sydney prices to increase by 6% to 9%. McGrath Estate Agent founder John McGrath downgraded his 2014 Sydney forecast from 10% to 5-8% in June.
We now know that Sydney recorded around 12.4% price growth in 2014 across all dwellings, according to CoreLogic RP Data. House prices were up 13.4% to $858,000, while unit prices increased by 8.3% over the year to $615,000.
The median house price for Sydney is now $873,786, after a 14% rise in prices during 2014, according to Fairfax's The Domain Group.
Christopher's confidence in the Sydney market remains, particularly given the Reserve Bank's February announcement that it would cut rates by 25 basis points to a record low of 2.25%.
"We believe Tuesday's interest rate cut will further stimulate the Sydney housing market through the full calendar year 2015," Christopher told Property Observer.
"Our forecast for this current year, made back in September 2014, would be a rise of between 8-12%.
"This assumed a stable interest rate environment. With this rate cut we believe the market will now likely increase by the upper end of this range.
"Sydney on top of the 30% gains we have had since the start of 2013 will mean the market may well be up by over 50% in Sydney in just three years."
His price prediction is once again more bullish than those made by many of his contemporaries. Wilson this year has forecast 7-10% growth, while NAB's Residential Property Survey respondents predict 4.1% gains. Wargent has pitched his forecast slightly lower than last year, this time predicting 5-8% price growth in 2015.
Whether yesterday's rate cut will cause experts to revise their forecasts remains to be seen. Meanwhile, the SQM Research founder's confidence is not reserved for just the Sydney market:
"We are also rather bullish now on holiday locations on the east coast of Australia given that the lower Australian Dollar should further assist local tourism economies," Christopher said.
THE median asking price for houses is on the increase with sellers in Sydney with the highest expectations.
New figures released from SQM Research reveal a median asking price of $1.066m for those selling houses in Sydney.
SQM Research managing director Louis Christopher said the $1 million barrier was broken about six weeks ago and the latest analysis showed it was continuing to lift.
Sydney could have a median house price of $1 million by the end of the year if the Reserve Bank drops interest rates again on Tuesday.
And on Saturday, with results in for 580 of the 699 scheduled auctions, Domain Group put the auction clearance rate at a record 89.1 per cent.
The auction market is running so hot that Domain Group senior economist Dr Andrew Wilson says the extra stimulus of another rate cut may fast-track his prediction of Sydney hitting the gobsmacking benchmark by the March quarter of next year.
"If we get lower interest rates, that will throw another a litre of fuel on the fire," Dr Wilson said.
"All bets are off – lower rates will create the capacity to purchase more because it will make property more affordable if those mortgage rates are passed on.
"Buyers will keep on queuing up for houses in Sydney, which doesn't have enough to go around."
Domain data showed the property market had raced past the $900,000 median over the March quarter. House prices had jumped 3.6 per cent in three months to a median of $914,056. And figures on Friday suggested the growth continued in April, with RP Data recording a 5.4 per cent lift for dwellings (houses and apartments combined) for the past three months.
Sydney recorded unprecedented auction clearance rates for April, which is a reliable indicator of market strength. The average was 83.6 per cent, which Dr Wilson said was a record. The previous monthly record was 82.8 per cent, set in March.
Inner-city agent David Servi, of Spencer and Servi First National, wasn't surprised to hear that the Sydney median house price could be $1 million by December. "It's an inevitable march," Mr Servi said.
The 6.8 per cent price growth for the city and east region to its median of $1,768,000 was dwarfed by the lower north shore which leapt 10.5 per cent to a $2 million median and the northern beaches which grew 10 per cent to $1,447,000.
Northern Beaches agent Tim Mumford, of Stone Real Estate, says he's never seen so many buyers coming from other parts of Sydney. "Families are moving across the Spit Bridge looking for grass and a backyard," he said.
Dr Wilson says Sydney is likely to have a $2 million median house price by 2030 and a $3 million median by 2038.
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