MSNBC -1.938% posted: In the next year or two, the median value of postcodes will be closer to $300,000, and some of the most desirable ones, like Auckland and South Canterbury, are already at the high end of that range.
But the trend towards lower-priced homes will continue.
“The median price of houses will probably be a little lower in 2020 than it was in 2020, and that will be offset by a bigger increase in the median price per square metre,” says David McWilliams, chief economist at CoreLogic.
“That will have an impact on the average price of a home and the value of a house, so we’ll see some really high prices on some of those areas.”
The biggest house-price growth is expected to be in the south of England, where median prices are expected to climb to around $500,000 by 2021.
The average price will be around $1.1 million, but the most expensive houses will be in South Auckland, which will get an average price increase of $6,300 to $1,400,000.
The region will also see a jump in the number of high-end houses, particularly in the outer suburbs of London, Liverpool and Manchester.
In the north of England the median house price is expected in 2020 to be around £1 million.
The most expensive house in the north will be at £1.3 million in Southampton, with the cheapest at just under £500,00.
House prices in the inner cities will be among the lowest in 2020 as demand for more affordable homes continues to rise.
But the median prices of those neighbourhoods will still be lower than those in the wider capital, and they will likely remain lower than they were in 2020.
“It’s the lowest price for houses in the capital, but it will continue to drop over time,” says Mr McWilliams.
However, he says, there is a possibility that the average house price will increase again by 2020.
“There is a lot of pent-up demand in the area.
I think the next few years are going to be a great time to be buying in this area,” he says.
While house prices are likely to continue to rise, the average income in the UK will be expected to fall slightly.
According to the latest census figures, the UK household income rate is expected be 1.9%, compared with 2.4% in the US, and 1.5% in Australia.
What will the trend be?
Despite the drop in the average cost per square foot, the typical home price is forecast to continue rising, with average prices expected to rise by between 2.2% and 3.1% in 2020 and 2020-2021.
A number of factors are expected as the housing market starts to recover, including:• The introduction of a minimum unit requirement that requires houses to be no more than 50% larger than their present size, and by 2020-21 will also be compulsory for new houses.• The rollout of new building materials to make up for a declining stock of existing homes.• An increased number of people renting out their properties, with most households renting fewer than three units.• Rising interest rates and tighter lending conditions.• Increased demand from consumers and small businesses for more property.
This article first appeared on The Conversation.